The shares of this rating agency gained up to 5 percent after the company approved the investment in the equity capital of Online PSB Loans Limited in the amount of Rs. 33.25 crores.
With a market capitalization of Rs 41,928.60 crore, the shares of CRISIL LTD. were trading at Rs 5,733.45 per share, increasing around 4 percent as compared to the previous closing price of Rs 5,525.60 apiece.
Reason for Rise:-
The shares of the company have seen positive movement after CRISIL LTD approved the investment in the equity capital of Online PSB Loans Limited to acquire a 4.08 percent stake in the company with an investment of Rs 33.25 crore.
Furthermore, given OPL’s established track record of collaborating with prominent financial institutions in this field, this represents a minority share of investment in the digital credit infrastructure ecosystem. In addition, there may be potential to collaborate with OPL in the MSME and agriculture sectors.
Financial performance:-
Examine the company’s financial condition, revenue jumped by 10 percent from Rs 736 crore in Q2FY24 to Rs 812 crore in Q2FY25, and during the same time frame, net profit magnified by 13 percent from Rs 152 crore to Rs 172 crore.
Indian economy:-
India’s GDP growth is projected at 6.8% for FY25, driven by investments, though private consumption lags. Corporate bond issuances rose 9% by March 2024, while bank credit grew 16.5%, fueled by retail and services. Medium-term growth prospects for India remain strong.
Future Strategy:-
The company’s strategy emphasizes exploring white spaces, engaging stakeholders, and innovating solutions in risk regulation, data analytics, sustainability, and private markets. It aims to expand services and partnerships, particularly with S&P Global divisions, leveraging industry growth for revenue and margin expansion.
With margins fluctuating between 18-24%, the focus is on improving consistency through technology and efficiency. Management prefers evaluating annual margins over quarterly trends. Despite macroeconomic headwinds and slower decision cycles, the company is actively pursuing opportunities to grow across all segments.
The organization is awaiting SEBI’s feedback on its ESG rating license application while monitoring the impact of global slowdowns and industry consolidation. By addressing competitive pressures and leveraging capabilities, it aims to balance challenges with opportunities to sustain long-term growth and profitability.
Company profile:-
CRISIL Ltd is a worldwide diverse analytical firm that offers ratings, research, risk, and policy advising services. CRISIL is India’s main rating agency and the premier source of high-end research for major banks and enterprises.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
