CRISIL Limited Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a pretty great week for CRISIL Limited (NSE:CRISIL) shareholders, with its shares surging 13% to ₹5,051 in the week since its latest yearly results. The result was positive overall - although revenues of ₹31b were in line with what the analysts predicted, CRISIL surprised by delivering a statutory profit of ₹90.07 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for CRISIL

Following the latest results, CRISIL's twin analysts are now forecasting revenues of ₹34.7b in 2024. This would be a notable 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 9.9% to ₹99.00. Before this earnings report, the analysts had been forecasting revenues of ₹35.3b and earnings per share (EPS) of ₹95.60 in 2024. So the consensus seems to have become somewhat more optimistic on CRISIL's earnings potential following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.7% to ₹3,706.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that CRISIL's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 14% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than CRISIL.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CRISIL's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that CRISIL's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

We also provide an overview of the CRISIL Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.