Stock Analysis

CRISIL Limited (NSE:CRISIL) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year

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NSEI:CRISIL

CRISIL Limited (NSE:CRISIL) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results look mixed - while revenue fell marginally short of analyst estimates at ₹8.1b, statutory earnings were in line with expectations, at ₹90.07 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for CRISIL

NSEI:CRISIL Earnings and Revenue Growth October 19th 2024

Taking into account the latest results, the current consensus from CRISIL's dual analysts is for revenues of ₹36.9b in 2025. This would reflect a meaningful 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 18% to ₹108. Before this earnings report, the analysts had been forecasting revenues of ₹37.2b and earnings per share (EPS) of ₹107 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of ₹4,332, suggesting that the company has met expectations in its recent result.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that CRISIL's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% 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 most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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. The consensus price target held steady at ₹4,332, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. 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.