Equity Research
Our offerings
SME Fundamental Research
CRISIL’s SME Fundamental Research offers evaluation of SMEs from an equity investor’s perspective. This helps small and medium-sized enterprises in accessing equity funding through the SME Exchange.
IPO Grading
CRISIL’s IPO Grading is designed to provide investors an independent, reliable and consistent assessment of the fundamentals of new public issues. It includes analysis of business and financial prospects, management quality, and corporate governance.
Equity Valuation
CRISIL’s Equity Valuation provides both public and private companies an independent opinion on their fair value.
Equity Support Services
CRISIL’s Equity Support Services provides outsourcing services for both buy-side and sell-side firms.
SME Fundamental Research
CRISIL’s SME Fundamental Research offers evaluation of SMEs from an equity investor’s perspective and helps small and medium-sized enterprises in accessing equity funding through the SME Exchange. In the past decade, CRISIL has pioneered many solutions for the development of India’s SME sector, and this service offering is another step in that direction.
Evaluation of SMEs from an equity investor’s perspective needs a specialised approach, as their characteristics are different from large companies. CRISIL’s SME Fundamental Research bridges this gap. The SME Exchange, set up by the National Stock Exchange, provides an exclusive trading platform for SMEs, facilitating the flow of equity capital to companies on a growth path, but not large enough to list on the main bourses.
CRISIL offers SME Fundamental Grading services for companies that plan to get listed on the SME Exchange. It also offers the SME Independent Equity Research for companies that are already listed on the SME Exchange.
Our offerings include
Our SME Fundamental Grading is an independent opinion on the fundamentals of an SME that is proposed to be listed on the SME Exchange. The grading is a relative assessment in relation to other SMEs in India. The assessment is based on a grading exercise carried out by industry specialists from CRISIL's Research division and comprises an analysis of the following:
- Business prospects
- Industry prospects
Assessment of attractiveness of the industry encompassing growth opportunities, degree of competition, regulatory risks and other parameters - Company prospects
The alignment between industry opportunities, the company's strategy and its capabilities
- Industry prospects
- Financial prospects
A forward looking assessment of key financial indicators relevant for an equity investor.
- Management quality
An assessment of the ability of the management to scale up the business and handle uncertainty.
- Corporate governance
An evaluation of the company's governance architecture to determine if it is structured such that the risks and rewards of business are equally available to all shareholders.
Our SME Fundamental Grading is CRISIL's current opinion on the fundamentals of the graded issue. This opinion is a relative assessment in relation to other SMEs in India. CRISIL SME Fundamental Grading reflects its assessment of the graded company's equity fundamentals as distinct from an assessment of debt fundamentals. A CRISIL SME Fundamental Grade should not be construed to mean a comment on the price of the graded security nor is it a recommendation to invest or not to invest in the graded SME / instrument.
SME Fundamental Grading benefits investors and aids companies in fund raising
The SME Fundamental Grading is particularly useful for investors who are seeking to invest in SME companies and aids companies in fund raising. Our SME Fundamental Grading aids investors to identify fundamentally better SME companies, thereby helping them to make informed investment decisions. An investment decision involves three key components:
- Analysis of fundamentals
- Analysis of returns
- Investor preference for the asset class
CRISIL SME Fundamental Grading aims to address the first component - analysis of fundamentals.
Grading list and rationales
| Company Name | SME Fundamental Grade | Date Assigned | Rationale |
|---|---|---|---|
| K.P. Energy Ltd. | SME 3/5 | December 24, 2015 | View |
| Perfect Infraengineers Ltd. | SME 4/5 | August 4, 2015 | View |
| MITCON Consultancy and Engineering Services Ltd. | SME 4/5 | September 19, 2013 | View |
| MobME Wireless Solutions Ltd. | SME 3/5 | March 13, 2013 | View |
| Opal Luxury Time Products Ltd. | SME 4/5 | February 25, 2013 | View |
| VKC Credit and Forex Services Ltd. | SME 3/5 | January 11, 2013 | View |
| Veto Switchgears and Cables Ltd. | SME 4/5 | October 19, 2012 | View |
| Thejo Engineering Ltd. | SME 5/5 | September 4, 2012 | View |
SME Independent Equity Research (SME IER) offers an independent and unbiased assessment of a company's fundamentals and valuation. SME IER covers companies which are already listed on the SME Exchange.
In contrast to traditional equity research models, CRISIL SME IER is carried out by an entity that does not have a transactional interest in the stock that is being researched. CRISIL SME IER also differs from conventional research in not making 'buy', 'hold', or 'sell' recommendations, and instead offers an opinion on the company's fundamentals and valuation. The advent of SME IER makes for a new paradigm in the Indian equity market, empowering individual investors to make better-informed investment decisions backed by high-quality research from India's leading research house.
Benefits of Equity Research
- Improved liquidity
Consistent research, with detailed initiation reports and quarterly updates, increases liquidity and helps the company to trade at fair prices - Easy access to capital
Generates awareness among investors and positions the company as a long-term prospect during fund-raising programmes - Enhanced visibility
Positions the company to domestic and international investors - Eases management bandwidth
Frees up the company's top management and investor relations team's bandwidth - Increased transparency
Creates an investor-friendly image for the company and raises transparency levels
The SME Independent Equity Research Reports we offer:
| Company Name | Detailed Report | First Half Yearly Update | Second Half Yearly Update |
|---|---|---|---|
| K.P. Energy Ltd | November 2017 | ||
| Opal LuxuryTime Products Ltd. | June 2013 | December 2013 | June 2014 |
| Thejo Engineering Ltd. | September 2016 | January 2018 | January 2017 |
| Veto Switchgearsand Cables Ltd. | January 2013 | June 2013 | November 2013 |
| MITCON Consultancy & Engineering Services Ltd. | January 2014 | November 2014 | June 2014 |
IPO Grading
CRISIL IPO Grading is designed to provide investors an independent, reliable and consistent assessment of the fundamentals of new public issues. It includes an assessment of business and financial prospects, management quality and corporate governance.
Introduced under the aegis of the Securities and Exchange Board of India (SEBI) regulation, an IPO grade is particularly useful to retail investors who are seeking to invest in companies unknown in the equity markets.
Our IPO grading is assigned by a separate equity-focused team (and not by credit rating analysts) to bring the necessary equity orientation to the outcome. It is much more than due diligence - it is an independent view on equity fundamentals. An unmatched track record of independent research and strong domain knowledge in all industries add to our credibility.
IPO Grading scale
| CRISIL IPO Grade | Assessment |
|---|---|
| 5/5 | Strong fundamentals |
| 4/5 | Above average fundamentals |
| 3/5 | Average fundamentals |
| 2/5 | Below average fundamentals |
| 1/5 | Poor fundamentals |
| Company Name | CRISIL IPO Grade | Date Assigned | View Rationale |
|---|---|---|---|
| TeamLease Services Pvt Ltd | CRISIL IPO Grade 4/5 | 10-Dec-15 | View |
| Sadbhav Infrastructure Project Ltd | CRISIL IPO Grade 4/5 | 26-Mar-15 | View |
| Snowman Logistics Ltd | CRISIL IPO Grade 4/5 | 10-Mar-14 | View |
| Wonderla Holidays Ltd | CRISIL IPO Grade 4/5 | 26-Feb-14 | View |
| Great Eastern Energy Corp. Ltd | CRISIL IPO Grade 3/5 | 11-Feb-14 | View |
| Advanced Enzyme Technologies Ltd(AETL). | CRISIL IPO Grade 3/5 | 05-Sep-13 | View |
| Wonderla Holidays Ltd (Wonderla). | CRISIL IPO Grade 4/5 | 12-Aug-13 | View |
| Just Dial Pvt Ltd | CRISIL IPO Grade 5/5 | 16-Apr-13 | View |
| ACB (India) Ltd | CRISIL IPO Grade 4/5 | 30-Jan-13 | View |
| Bharti Infratel Ltd | CRISIL IPO Grade 4/5 | 27-Nov-12 | View |
| PC Jeweller Ltd | CRISIL IPO Grade 3/5 | 06-Nov-12 | View |
| Powerica Ltd | CRISIL IPO Grade 4/5 | 17-Oct-12 | View |
| Just Dial Limited | CRISIL IPO Grade 5/5 | 14-Jun-12 | View |
| VKS Projects Ltd | CRISIL IPO Grade 1/5 | 09-May-12 | View |
| Speciality Restaurants Ltd | CRISIL IPO Grade 4/5 | 23-Mar-12 | View |
| Modern Tube Industries Ltd | CRISIL IPO Grade 1/5 | 15-Mar-12 | View |
| Tribhovandas Bhimji Zaveri Limited | CRISIL IPO Grade 3/5 | 24-Feb-12 | View |
| Olympic Cards Ltd. | CRISIL IPO Grade 1/5 | 21-Feb-12 | View |
| Varahi LImited | CRISIL IPO Grade 3/5 | 21-Feb-12 | View |
| Multi Commodity Exchange of India Ltd. | CRISIL IPO Grade 5/5 | 06-Jan-12 | View |
| Just Dial Ltd | CRISIL IPO Grade 5/5 | 26-Dec-11 | View |
| MT Educare Limited | CRISIL IPO Grade 4/5 | 23-Dec-11 | View |
| Automark Industries (India) Ltd | CRISIL IPO Grade 2/5 | 22-Dec-11 | View |
| Bio Ethanol India Ltd | CRISIL IPO Grade 2/5 | 25-Nov-11 | View |
| Joyalukkas India Ltd. | CRISIL IPO Grade 3/5 | 04-Oct-11 | View |
| Jawed Habib Hair & Beauty Ltd | CRISIL IPO Grade 2/5 | 24-Aug-11 | View |
| Modern Tube Industries Ltd. | CRISIL IPO Grade 1/5 | 18-Aug-11 | View |
| APR Constructions Ltd. | CRISIL IPO Grade 2/5 | 03-Aug-11 | View |
| Tribhovandas Bhimji Zaveri Ltd. | CRISIL IPO Grade 3/5 | 12-Jul-11 | View |
| NetAlter Software Ltd. | CRISIL IPO Grade 1/5 | 17-Jun-11 | View |
| Multi Commodity Exchange of India Ltd | CRISIL IPO Grade 5/5 | 15-Jun-11 | View |
| Speciality Restaurants Ltd | CRISIL IPO Grade 4/5 | 15-Jun-11 | View |
| Olympic Cards Ltd. | CRISIL IPO Grade 1/5 | 10-Jun-11 | View |
| Tree House Education & Accessories Ltd. | CRISIL IPO Grade 3/5 | 10-May-11 | View |
| Tata Autocomp Systems Ltd. | CRISIL IPO Grade 3/5 | 04-May-11 | View |
| Unijules Life Sciences Ltd | CRISIL IPO Grade 1/5 | 28-Apr-11 | View |
| Timbor Home Ltd | CRISIL IPO Grade 1/5 | 28-Apr-11 | View |
| Aanjaneya Lifecare Ltd | CRISIL IPO Grade 1/5 | 28-Mar-11 | View |
| One97 Communications Limited | CRISIL IPO Grade 3/5 | 18-Mar-11 | View |
| Muthoot Finance Limited | CRISIL IPO Grade 4/5 | 09-Mar-11 | View |
| VRL Logistics Limited | CRISIL IPO Grade 3/5 | 09-Mar-11 | View |
| PTC India Financial Services Limited | CRISIL IPO Grade 3/5 | 01-Mar-11 | View |
| Sudar Garments Limited | CRISIL IPO Grade 1/5 | 21-Jan-11 | View |
| Galaxy Surfactants Limited | CRISIL IPO Grade 4/5 | 17-Jan-11 | View |
| Endurance Technologies Limited | CRISIL IPO Grade 3/5 | 04-Jan-11 | View |
| Sterlite Energy Limited | CRISIL IPO Grade 4/5 | 02-Dec-10 | View |
| IOT Infrastructure and Energy Services Ltd. | CRISIL IPO Grade 4/5 | 02-Dec-10 | View |
| Shirdi Industries Ltd. | CRISIL IPO Grade 2/5 | 26-Nov-10 | View |
| Greatship (India) Ltd. | CRISIL IPO Grade 4/5 | 10-Nov-10 | View |
| Embassy Property Developments Ltd | CRISIL IPO Grade 4/5 | 29-Oct-10 | View |
| Virgo Engineers Limited | CRISIL IPO Grade 4/5 | 30-Sep-10 | View |
| Oberoi Realty Ltd | CRISIL IPO Grade 4/5 | 24-Sep-10 | View |
| One97 Ltd | CRISIL IPO Grade 3/5 | 07-Sep-10 | View |
| Coal India Ltd | CRISIL IPO Grade 5/5 | 03-Sep-10 | View |
| YOU Broadband & Cable India Limited | CRISIL IPO Grade 2/5 | 01-Sep-10 | View |
| Tecpro Systems Limited | CRISIL IPO Grade 4/5 | 17-Aug-10 | View |
| Ramky Infrastructure Ltd | CRISIL IPO Grade 3/5 | 16-Aug-10 | View |
| Raheja Universal Limited | CRISIL IPO Grade 3/5 | 16-Aug-10 | View |
| Ashoka Buildcon Limited | CRISIL IPO Grade 4/5 | 09-Aug-10 | View |
| Orient Green Power Ltd. | CRISIL IPO Grade 4/5 | 29-Jul-10 | View |
| Microsec Financial Services Ltd. | CRISIL IPO Grade 2/5 | 26-Jul-10 | View |
| Commercial Engineers & Body Builders Co. Ltd. | CRISIL IPO Grade 2/5 | 23-Jul-10 | View |
| Bajaj Corp Ltd | CRISIL IPO Grade 4/5 | 28-Jun-10 | View |
| Hindustan Media Ventures Limited | CRISIL IPO Grade 4/5 | 17-May-10 | View |
| Gujarat State Petroleum Corporation | CRISIL IPO Grade 4/5 | 10-May-10 | View |
| Gujarat Pipavav Port Ltd. | CRISIL IPO Grade 4/5 | 22-Mar-10 | View |
| Oberoi Realty Ltd. | CRISIL IPO Grade 4/5 | 22-Mar-10 | View |
| Indosolar Ltd. | CRISIL IPO Grade 3/5 | 18-Mar-10 | View |
| Persistent Systems Ltd. | CRISIL IPO Grade 4/5 | 02-Mar-10 | View |
| Nitesh Estates Ltd. | CRISIL IPO Grade 2/5 | 02-Mar-10 | View |
| Tarapur Transformers Ltd. | CRISIL IPO Grade 1/5 | 10-Feb-10 | View |
| Glenmark Generics Ltd. | CRISIL IPO Grade 4/5 | 09-Feb-10 | View |
| D B Realty Ltd. | CRISIL IPO Grade 2/5 | 14-Jan-10 | View |
| Man Infraconstruction Ltd. | CRISIL IPO Grade 3/5 | 05-Jan-10 | View |
| Radiant Info Systems Ltd. | CRISIL IPO Grade 1/5 | 23-Dec-09 | View |
| Hathway Cables & Datacom Ltd. | CRISIL IPO Grade 3/5 | 23-Dec-09 | View |
| Ashoka Buildcon Ltd. | CRISIL IPO Grade 4/5 | 14-Dec-09 | View |
| Vascon Engineers Ltd. | CRISIL IPO Grade 3/5 | 08-Dec-09 | View |
| Mandhana Industries Ltd. | CRISIL IPO Grade 3/5 | 17-Nov-09 | View |
| Infinite Computer Solutions (India) Ltd. | CRISIL IPO Grade 2/5 | 07-Oct-09 | View |
| Indiabulls Power Ltd. | CRISIL IPO Grade 3/5 | 06-Oct-09 | View |
| Oil India Ltd. | CRISIL IPO Grade 4/5 | 11-Aug-09 | View |
| Mandhana Industries Ltd. | CRISIL IPO Grade 3/5 | 08-Oct-08 | View |
| Neoteric Infomatique Ltd. | CRISIL IPO Grade 2/5 | 23-Jul-08 | View |
| VRL Logistics Ltd. | CRISIL IPO Grade 2/5 | 20-Jun-08 | View |
| Nu Tek India Ltd. | CRISIL IPO Grade 3/5 | 09-Jun-08 | View |
| Virgo Engineers Ltd. | CRISIL IPO Grade 4/5 | 04-Jun-08 | View |
| Microsec Financial Services Ltd. | CRISIL IPO Grade 2/5 | 29-May-08 | View |
| RITES Limited | CRISIL IPO Grade 3/5 | 28-May-08 | View |
| Multi-Commodity Exchange of India Ltd. (MCX) | CRISIL IPO Grade 5/5 | 22-May-08 | View |
| Ramky Infrastructure Ltd. | CRISIL IPO Grade 3/5 | 08-May-08 | View |
| Shankara Pipes India Ltd. | CRISIL IPO Grade 2/5 | 07-Apr-08 | View |
| UTI Asset Management Company Ltd. | CRISIL IPO Grade 4/5 | 18-Mar-08 | View |
| Resurgere Mines & Minerals India Ltd. | CRISIL IPO Grade 1/5 | 11-Mar-08 | View |
| Sejal Architectural Glass Ltd. | CRISIL IPO Grade 1/5 | 10-Mar-08 | View |
| Mandhana Industries Ltd. | CRISIL IPO Grade 3/5 | 27-Feb-08 | View |
| Rural Electrification Corporation Ltd. | CRISIL IPO Grade 3/5 | 04-Feb-08 | View |
| Vascon Engineers Ltd. | CRISIL IPO Grade 3/5 | 29-Jan-08 | View |
| Prince Foundations Ltd. | CRISIL IPO Grade 2/5 | 29-Jan-08 | View |
| Acme Tele Power Ltd. | CRISIL IPO Grade 5/5 | 23-Jan-08 | View |
| V-Guard Industries Ltd. | CRISIL IPO Grade 3/5 | 16-Jan-08 | View |
| Shriram EPC Ltd. | CRISIL IPO Grade 3/5 | 14-Jan-08 | View |
| Reliance Power Ltd. | CRISIL IPO Grade 4/5 | 31-Dec-07 | View |
| KNR Constructions Ltd. | CRISIL IPO Grade 3/5 | 06-Dec-07 | View |
| Persistent Systems Limited | CRISIL IPO Grade 4/5 | 03-Dec-07 | View |
| OnMobile Global Limited | CRISIL IPO Grade 4/5 | 07-Nov-07 | View |
| Tecpro Systems Limited | CRISIL IPO Grade 3/5 | 06-Nov-07 | View |
| eClerx Services Limited | CRISIL IPO Grade 3/5 | 05-Nov-07 | View |
| Edelweiss Capital Limited | CRISIL IPO Grade 4/5 | 22-Oct-07 | View |
| Varun Industries Limited | CRISIL IPO Grade 1/5 | 10-Sep-07 | View |
| Precision Pipes and Profiles Company Ltd. | CRISIL IPO Grade 4/5 | 04-Sep-07 | View |
| Kiri Dyes and Chemicals Ltd. | CRISIL IPO Grade 2/5 | 12-Jul-07 | View |
| Bhagwati Banquets and Hotels Ltd. | CRISIL IPO Grade 1/5 | 09-Nov-06 | - |
| Celestial Labs Ltd. | CRISIL IPO Grade 1/5 | 09-Nov-06 | - |
| Suryachakra Power Corporation Ltd. | CRISIL IPO Grade 2/5 | 05-Oct-06 | - |
| SVP Industries Ltd. | CRISIL IPO Grade 1/5 | 05-Oct-06 | - |
| Minar International Ltd. | CRISIL IPO Grade 4/5 | 10-Aug-06 | - |
| Shree Ashtavinayak Cine Vision Ltd. | CRISIL IPO Grade 4/5 | 10-Aug-06 | - |
Equity Valuation
With a universe of about 100 companies under coverage, we are the best equipped to provide both public and private companies with an independent opinion on fair value. Our valuation represents the most likely price around which a deal can happen, if more than one independently acting potential buyer/seller is found after adequate efforts, but within a limited timeframe after our analysis. The buyer/seller should have similar knowledge of the business being transacted and its environmental factors. They should have no other strategic factors weighing upon their mind as regards potential of this business.
CRISIL Limited is registered as a research analyst under SEBI (Research Analysts) Regulations, 2014 with registration number INH000007854 for the service. CRISIL Limited also engages in other business activities in the research and analytics domain.
Equity Support Services
CRISIL provides outsourcing services for both buy-side and sell-side firms. The advantages of CRISIL’s equity support services include:
- Cost savings of at least 30%
- Flexible delivery models: both project and full-time employee (FTE) models are offered
- Leverages CRISIL’s knowledge:
- Experienced analysts with sector-specific knowledge
- Refined research processes and proprietary techniques, ensuring high-quality output
- Focused training programmes to ensure analysts are kept abreast with the latest analytical techniques.