Crisil Vs ICRA – Best Credit Rating Stocks

Company Overview of ICRA Ltd

ICRA Limited is a professional investment information and credit rating agency based in India. The company, along with its subsidiaries, offers a range of services including rating, research, analytics, data and software solutions. Its business segments consist of rating, research and other services, as well as consulting services, knowledge services and market services. 

The Rating, Research and Other Services segment focuses on providing rating, grading and industry research services for a variety of entities such as manufacturing companies, commercial banks, non-banking finance companies, public sector undertakings and municipalities. The Consulting Services segment specializes in management consulting services such as risk management, financial advisory, outsourcing and policy advisory.

Company Overview of Crisil Ltd

CRISIL Limited, headquartered in India, is an analytics company that offers a wide range of services including ratings, data, research and analytics solutions. The company operates through three main segments: Ratings, Research and Advisory. In the Ratings segment, CRISIL provides credit ratings for various entities such as corporates, banks and small and medium enterprises (SMEs) and offers credit analysis, grading services and global analytical services. 

The Research segment focuses on global research and risk solutions, industry reports, customized research projects, data services subscriptions, independent equity research (IER), IPO gradings and training. Additionally, the company provides advisory services and a variety of risk management tools, analytics and solutions to financial institutions, banks and corporations in India.  

The Stock Performance of ICRA Limited

The table below displays the month-by-month stock performance of ICRA Ltd for the past year.

The Stock Performance of Crisil Limited

The table below displays the month-by-month stock performance of CRISIL Ltd for the past year.

Fundamental Analysis of ICRA Ltd

ICRA Ltd is a prominent credit rating agency in India, known for its comprehensive research and analytics. Established in 1991, it offers a variety of services, including credit ratings, risk assessments and research insights. ICRA is a key player in enhancing market transparency and helps investors make informed decisions by providing detailed evaluations of various entities, including corporations and financial institutions.  

The stock is priced at ₹5,684.40, with a market capitalization of ₹5,776.31 crore. It has experienced a 1-year return of -4.90% and a 6-month decline of -2.83%. The stock is 36.08% away from its 52-week high. With a 5-year CAGR of 13.63%.

• Close Price ( ₹ ): 5684.40
• Market Cap ( Cr ): 5776.31
• Dividend Yield %: 1.67  
• 1Y Return %: -4.90
• 6M Return %: -2.83
• 1M Return %: -6.69
• 5Y CAGR %: 13.63
• % Away From 52W High: 36.08
• 5Y Avg Net Profit Margin %: 27.59 

Fundamental Analysis of Crisil

CRISIL is a global analytical company based in India, known for its expertise in credit ratings, research, risk and policy advisory services. Founded in 1987, it has established itself as a leader in the financial market, providing insights and analytical tools to help businesses make informed decisions. The company’s diverse offerings cater to various sectors, assisting clients in managing risks and enhancing performance.  

The stock is currently priced at ₹4,944.85, with a market capitalization of ₹37,272.18 crore. It has delivered a 1-year return of -1.62% and a 6-month return of 7.49%. The stock is 40.55% below its 52-week high. With a 5-year CAGR of 25.60%, the company shows strong long-term growth potential.  

• Close Price ( ₹ ): 4944.85
• Market Cap ( Cr ): 37272.18
• Dividend Yield %: 0.51 
• 1Y Return %: -1.62
• 6M Return %: 7.49
• 1M Return %: -10.09
• 5Y CAGR %: 25.60
• % Away From 52W High: 40.55
• 5Y Avg Net Profit Margin %: 19.34 

Financial Comparison of ICRA and Crisil

The table below shows a financial comparison of ICRA Ltd and CRISIL Ltd.

Points to be noted:

• (TTM) Trailing 12 Months – Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company’s performance data when reporting financial figures.
• EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization): Measures a company’s profitability before accounting for financial and non-cash expenses.
• PBIT (Profit Before Interest and Tax): Reflects operating profit by excluding interest and taxes from total revenue.
• PBT (Profit Before Tax): Indicates profit after deducting operating costs and interest but before taxes.
• Net Income: Represents the company’s total profit after all expenses, including taxes and interest, are deducted.
• EPS (Earnings Per Share): Shows the portion of a company’s profit allocated to each outstanding share of stock.
• DPS (Dividend Per Share): Reflects the total dividend paid out per share over a specific period.
• Payout Ratio: Measures the proportion of earnings distributed as dividends to shareholders.

Dividend of ICRA and Crisil

The table below shows a dividend paid by the company.

Advantages and Disadvantages of Investing in ICRA Limited

ICRA Ltd

The primary advantage of ICRA Ltd lies in its leadership in the credit rating and research space in India. As a subsidiary of Moody’s, it has access to global expertise, strong brand recognition and a trusted reputation for delivering reliable, accurate assessments for financial markets.

1. Market Leadership in Credit Ratings – ICRA is one of the leading credit rating agencies in India. It provides credit ratings, research and risk analysis, benefiting from a high level of credibility in both domestic and international markets.
2. Strong Parent Company – As a subsidiary of Moody’s, ICRA benefits from global expertise, access to extensive data and international standards. This relationship strengthens its position in the competitive credit rating and financial research industries.
3. Diverse Service Offerings – ICRA provides a wide range of services, including credit ratings, risk management solutions and financial research. This diversification allows the company to capture a larger market share across various industries, such as banking, insurance and corporates.
4. Regulatory and Industry Recognition – The company is highly regarded by both Indian regulatory bodies and industry participants. Its ratings are widely used by government agencies, financial institutions and corporations, adding to its credibility and trust in the market.
5. Strong Clientele and Market Reach – ICRA has a broad customer base, serving leading corporations, financial institutions and government bodies. Its long-standing relationships with prominent clients help maintain stable revenue streams and drive growth in the competitive financial services sector.

The main disadvantage of ICRA Ltd is its dependence on the credit rating industry, which can be subject to economic cycles. Economic downturns or fluctuations in the financial markets can lead to reduced demand for ratings and financial research, impacting revenue stability.

1. Dependence on Credit Rating Demand – ICRA’s core business is heavily reliant on demand for credit ratings. During economic downturns or financial crises, companies may issue fewer bonds or seek fewer ratings, reducing the company’s revenue and growth prospects.
2. Intense Competition in the Market – The credit rating industry is highly competitive, with players like CRISIL, CARE Ratings and India Ratings dominating the market. This competition places pressure on ICRA to maintain its market share and continuously innovate.
3. Regulatory Challenges – As a credit rating agency, ICRA is subject to government regulations and industry norms. Changes in regulations or government policies could result in higher compliance costs or limit the agency’s ability to operate freely in certain sectors.
4. Reputation Risks – ICRA’s reputation is crucial to its success and any misjudgment or inaccurate rating could negatively impact its credibility. Given its influence in financial markets, any errors could harm its market position and relationships with clients.
5. Limited Diversification – While ICRA has a strong presence in the credit rating industry, its revenue streams remain largely concentrated in this area. A lack of significant diversification into other services or industries may expose the company to greater risks from market fluctuations.

Advantages and Disadvantages of Investing in Crisil

CRISIL Ltd

The primary advantage of CRISIL Ltd lies in its dominant position as a leading global analytics and ratings agency. With extensive expertise in credit ratings, risk management and research, CRISIL has a strong reputation and access to valuable market insights.

1. Leadership in Credit Ratings and Research – CRISIL is one of the most respected credit rating agencies globally. Its deep industry knowledge, coupled with a solid track record, helps establish it as a trusted provider of ratings and financial research to global markets.
2. Global Presence and Reach – CRISIL has a wide-reaching international presence, offering services across major global markets. This international footprint enables the company to capture a broad range of clients, including financial institutions, corporations and governments worldwide.
3. Comprehensive Financial Solutions – Beyond credit ratings, CRISIL provides a range of services, including risk analysis, market research and advisory solutions. This diversification helps the company maintain a steady flow of revenue, reducing dependency on a single service offering.
4. Strong Parent Company – As a subsidiary of S&P Global, CRISIL benefits from its parent’s global network, access to global data and leading financial services expertise. This relationship gives CRISIL a competitive edge in providing high-quality services across various industries.
5. Robust Client Base – CRISIL serves a diverse clientele, including major banks, insurers, corporations and governments. Its large and diverse customer base provides consistent demand for its services, offering stability and reducing the impact of any downturn in a specific sector.

The main disadvantage of CRISIL Ltd lies in its heavy reliance on the credit rating and financial research business, which makes it vulnerable to fluctuations in market conditions. Economic downturns or regulatory changes can impact demand for its services, affecting profitability.

1. Dependence on Market Conditions – CRISIL’s core business, credit ratings and research are directly influenced by market conditions. Economic slowdowns or recessions can lead to reduced demand for financial services, affecting the company’s overall revenue and growth.
2. Regulatory and Compliance Risks – As a credit rating agency, CRISIL must comply with regulatory standards in multiple jurisdictions. Changes in regulations or government policies could increase compliance costs, hinder growth opportunities, or limit its ability to operate freely in certain markets.
3. Intense Competition – CRISIL faces strong competition from other global and local players in the credit rating and research space, such as Moody’s, Fitch and ICRA. Intense competition can lead to pricing pressures, reducing profit margins and market share.
4. Concentration in the Indian Market – Although CRISIL has a global presence, a significant portion of its revenue comes from India. Any downturn or slow growth in the Indian economy could impact CRISIL’s business and revenue generation capabilities.
5. Reputation Risk – CRISIL’s business relies heavily on its reputation for providing accurate and reliable ratings. Any errors in its ratings or a lapse in judgment could lead to reputational damage, affecting client trust and long-term business prospects.

How to Invest in Crisil and ICRA Stocks?

Suppose you are looking to invest in Crisil and ICRA Stocks. In that case, you can easily do so through Alice Blue, where purchasing stocks is free with zero brokerage on equity delivery trades.

Step 1: Open a Demat & Trading Account

• Visit Alice Blue’s website
• Click on “Open Demat Account” and complete the registration.
• Upload your PAN, Aadhaar and bank details for verification.

Step 2: Add Funds to Your Trading Account

• Log in to Alice Blue and go to the Funds section.
• Add money via UPI, Net Banking, or NEFT/RTGS for smooth transactions.

Step 3: Search & Analyze Crisil and ICRA Stocks.

• Use the search bar to find Crisil and ICRA Stocks.
• Check the market price, charts and company details before investing.

 Step 4: Place Your Buy Order

• Click Buy and choose Market Order (instant purchase) or Limit Order (buy at your set price).
• Enter the quantity and confirm your order.

ICRA vs. Crisil Limited- Conclusion

ICRA is a leading credit rating agency in India, known for its strong domestic market presence and high credibility. While it faces competition from other agencies, its focus on research and risk management services positions it well for long-term growth despite market fluctuations.

CRISIL Ltd a subsidiary of S&P Global, is a global leader in credit ratings, risk and financial research. With a strong international presence, it benefits from its parent company’s global network, offering diverse services, but also faces challenges from regulatory pressures and competitive market conditions.

ICRA vs. Crisil – FAQ

Disclaimer: The above article is written for educational purposes and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.