CRISIL Limited (NSE:CRISIL) Yearly Results: Here's What Analysts Are Forecasting For This Year

It's shaping up to be a tough period for CRISIL Limited (NSE:CRISIL), which a week ago released some disappointing yearly results that could have a notable impact on how the market views the stock. CRISIL missed analyst forecasts, with revenues of ₹33b and statutory earnings per share (EPS) of ₹93.55, falling short by 2.5% and 2.6% respectively. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for CRISIL

Taking into account the latest results, the most recent consensus for CRISIL from two analysts is for revenues of ₹36.2b in 2025. If met, it would imply a solid 11% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 19% to ₹112. Before this earnings report, the analysts had been forecasting revenues of ₹37.0b and earnings per share (EPS) of ₹110 in 2025. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The average price target was steady at ₹5,062even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that CRISIL's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. Compare this to the 300 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 12% per year. Factoring in the forecast slowdown in growth, it looks like CRISIL is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on CRISIL. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

You can also see our analysis of CRISIL's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.