CRISIL Ltd - Q2 CY21 Result Report - YES Securities

(Rating: BUY, TP: Rs3,371, Upside: 12.2%)

Strong beat in Research and Advisory business: BUY

Our view: CRISIL delivered better than expected performance especially in the Research and advisory businesses. Ratings business performance was weaker than expectations on the back of lockdowns imposed during COVID. We expect the ratings business to come back to growth as the economy opens up. We have revised our estmates higher to factor in better than expected delivery in research and advisory business. Also, we have factored in lower growth in ratings business now. We have revised our valuation multiples considering higher earnings growth. Retain our BUY rating.

Overall performance

- Net revenues came in at Rs5,285mn (+12% yoy and +7% qoq), which are ahead of our estimates by 3%.

- EBIDTA at Rs1,393mn was ahead of our estimates by 11% and EBIDTA margins were ahead of estimates by 210bps at 26.4%. EBIDTA was higher by 20% yoy and EBIDTA margins were higher by 172bps yoy.

- PAT at Rs1,008mn was ahead of our estimates by 24.2%. PAT surged by 52% yoy and 21% qoq.

Shares of CRISIL LTD. was last trading in BSE at Rs. 2953.65 as compared to the previous close of Rs. 3113.35. The total number of shares traded during the day was 55969 in over 9491 trades.

The stock hit an intraday high of Rs. 3323 and intraday low of 2910. The net turnover during the day was Rs. 175949288.

Source : Equity Bulls

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