CDSL Share Price: Financial Services Stock Drops 8.97%, Buy?

CDSL shares today witnessed steep decline of 8.97% on National Stock Exchange (NSE) to Rs 1365.70 per share at the time of writing the story. Central Depository Services (India) Limited shares declined after the firm reported lower than expected Q3FY25 results.

The company announced a surge of 21.5% year-on-year (YoY) in its consolidated profit after tax (PAT) to Rs 130 crore as against Rs 107 crore reported in the corresponding quarter of last year. The company has a market capitalisation of Rs 28,519.10 crore. Life Insurance Corporation of India (LIC) has 4.40% stake in CDSL.

CDSL Q3 Performance

The company announced its operating income for the quarter ended December 31, 2024 at Rs 221 crore as against Rs 248 crore declared in the similar quarter of last year. The total income that CDSL declared witnessed decline sequentially as well. The firm declared its net profit at Rs 161.96 crore and total income at Rs 358.51 crore in last quarter.

Meanwhile, the new accounts that were opened during the quarter announced at 92 lakh as compared to 1.18 crore accounts opened during September quarter. It has turned out to the lowest figure of new accounts opened since December quarter of FY2024.

On the other hand, the demat custody for the quarter ended December 31, 2024 reported at 75 lakh crore as against Rs 78 lakh crore in September, as per the company’s investor presentation.

According to Motilal Oswal Financial Services, continuous investments in human resources and technology for future growth is likely to limit gains from operating leverage for the company. But, CDSL still anticipates EBITDA margin to grow to nearly 65% in financial year 2027 from 60.3% in financial year 2024.

Should You Buy CDSL Shares?

According to A R Ramachandran, SEBI registered Independent research analyst, “CDSL is bearish yet oversold on the Daily charts with next support at 1290. Investors should buy only if Daily close is above resistance of 1500 for a target of 1638 in the near term.”

Meanwhile, out of a total of 10 analysts that imitated coverage on CDSL share, six have recommended hold rating, while 2 suggested buy call and the remaining 2 assigned sell call, according to Bloomberg data.

CDSL Share Performance

The 52-week high price of CDSL shares on NSE stood at Rs 1989.80 per share (as on December 17, 2024) and 52-week low price is Rs 811.00 per share (as on March 20, 2024), respectively. The zero-debt burden stock slipped 14.92% in last 2-weeks, surged 10.37% in last 6-months, and rose 53.64% in last 1-year. In last 3-years, CDSL stock rallied 82.87% and 913.53% in last 5-years.

CDSL Dividend History

It recommended a total of 8 dividends since August 9, 2018. In last 1-year, CDSL announced an equity dividend amounting to Rs 22.00 per share. At the current share price of Rs 1365.70, CDSL offers a dividend yield of 1.64%.

CDSL Bonus Share History

It recommended bonus shares once since August 23, 2024. Its last bonus was declared in the ratio of 1:1 with ex-bonus date set as August 23, 2024.

CDSL About

Central Depository Services Limited (“CDSL”) was found in 1999 to fulfil one goal: Convenient, Dependable and secured depository services. It is a Market Infrastructure Institution (MII) and a key part of the Capital market structure, providing services to all Market participants – Exchanges, Clearing Corporations, Depository Participants (DPs), Issuers and Investors. It is headquartered in Mumbai, according to its official website.

Disclaimer

The stock has been picked from the brokerage report of A R Ramachandran and 10 other analysts. Moneydaily.in, the Author, and the respective Brokerage House will not be held accountable for any losses caused as a result of decisions based on the article. MoneyDaily.in advises readers to do their own research or consult a SEBI registered investment advisor before making any investment decisions.