Buy Crisil, target price Rs 2261: Edelweiss Securities

Edelweiss Securities has buy call on Crisil with a target price of Rs 2261. The current market price of Crisil is Rs 1889.95.

Crisil Ltd, incorporated in the year 1987, is a Mid Cap company with a market cap of Rs 13700.08 Crore, operating in Financial Services sector.

Crisil's key Products/Revenue Segments include Other Services and Income From Rating Services for the year ending 31-Dec-2020.

Investment Rationale
Research sales grew 18 per cent YoY led by growth in:

• Global Research & Risk Solutions (GR&RS) business driven by existing and new mandates across transformation, change and regulatory offerings.
• Contribution from Greenwich, which saw good traction for its voice-of-client analytics.
• Sustained recovery in India Research, which saw increased demand for data, research and analytics underpinned by an uptick in industrial activity and capital markets.

Financials
For the quarter ended 31-03-2021, the company has reported a Consolidated Total Income of Rs 508.65 Crore, down -16.92 per cent from last quarter Total Income of Rs 612.22 Crore and up 9.95 per cent from last year same quarter Total Income of Rs 462.62 Crore. Company has reported net profit after tax of Rs 83.52 Crore in latest quarter.

Promoter/FII Holdings
Promoters held 67.40 per cent stake in the company as of the fourth quarter ending March 31, 2020, while FIIs held 5.72 per cent, DIIs 11.78 per cent and public & others 14.88 per cent.