Central Depository Services (India) Limited (CDSL) AI Stock Analysis

• Market Cap: ₹322.26B
• Dividend Yield: 0.84%
• Average Volume (3M): 2.58M
• Price to Earnings (P/E): 66.5
• Beta (1Y): 1.99
• Revenue Growth: 18.35%
• EPS Growth: 3.14%
• Country: IN
• Employees: 335
• Sector: Financial
• Sector Strength: 71
• Industry: Financial - Capital Markets
• EPS (TTM): 4.90
• Shares Outstanding: 209,000,000
• 10 Day Avg. Volume: 1,663,765
• 30 Day Avg. Volume: 2,577,282
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,643.00
• Price Target Upside: 10.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 63 Neutral
• Price Target: ₹1,643.00 ▲(10.11% Upside)

The overall stock score reflects strong financial performance, which is the most significant factor, supported by robust profitability and efficient operations. However, technical analysis indicates bearish momentum, and the valuation suggests the stock is overvalued, which tempers the overall score.

Central Depository Services (India) Limited Business Overview & Revenue Model

Company Description

Central Depository Services (India) Limited (CDSL) is one of the leading securities depositories in India, providing electronic holding and settlement of securities. Established in 1999, CDSL primarily serves the Indian financial markets by offering services related to the dematerialization of securities, which includes facilitating the conversion of physical securities into electronic form. As part of its core services, CDSL supports a range of financial market participants, including investors, stockbrokers, and issuers, by providing facilities such as account maintenance, transaction processing, and various investor services.

How the Company Makes Money

CDSL generates revenue primarily through transaction fees, account maintenance charges, and settlement fees associated with their depository services. A significant portion of their earnings comes from dematerialization and rematerialization of securities, as well as charges for safekeeping of securities. Additionally, CDSL earns through corporate action processing fees, which arise from events like dividends, interest payouts, and rights issues. The company also benefits from partnerships with stock exchanges, clearing corporations, and financial institutions to enhance its service offerings. Notably, CDSL's income is bolstered by the growth in investor accounts and increased market activity, which drive transaction volumes and, consequently, revenue.

Central Depository Services (India) Limited Financial Statement Overview

Summary

Central Depository Services (India) Limited exhibits strong financial health, characterized by impressive profitability and efficient operations. The company maintains a solid balance sheet with low debt levels and robust equity. Cash flow generation is strong, supporting strategic growth initiatives. Continuous revenue growth and stable margins position the company well in the financial capital markets industry.

Income Statement

The company demonstrates strong profitability with a consistent increase in revenue over the years. The TTM net profit margin stands at 43.89%, indicating effective cost management. Revenue growth is robust, with a 33.05% increase over the previous year. Gross profit margin is solid at 100%, and both EBIT and EBITDA margins are strong, showcasing operational efficiency.

Balance Sheet

The balance sheet reflects a healthy financial position with low leverage, evidenced by a low debt-to-equity ratio. The equity ratio is quite strong at 81.42%, indicating a solid equity base. Return on Equity (ROE) is impressive at 29.90%, demonstrating efficient use of shareholders' equity. However, the slight increase in total liabilities warrants monitoring.

Cash Flow

Cash flow metrics are robust, with a strong operating cash flow to net income ratio of 1.03, indicating effective cash generation relative to profit. The free cash flow growth rate is notable at 23.80%, supporting future growth opportunities. The free cash flow to net income ratio is positive at 0.73, aligning with healthy cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.43B	11.99B	9.01B	6.14B	5.51B	3.99B
Gross Profit	9.90B	11.99B	9.01B	6.14B	4.47B	3.99B
EBITDA	7.31B	7.05B	5.83B	3.89B	4.20B	2.70B
Net Income	5.27B	5.26B	4.19B	2.76B	3.11B	2.00B
Balance Sheet
Total Assets	21.62B	21.62B	17.82B	14.57B	13.26B	10.84B
Cash, Cash Equivalents and Short-Term Investments	9.56B	9.56B	6.86B	5.89B	7.18B	6.26B
Total Debt	29.79M	29.79M	13.56M	23.70M	2.91M	2.77M
Total Liabilities	3.58B	3.58B	2.74B	2.00B	1.89B	1.64B
Stockholders Equity	17.60B	17.60B	14.63B	12.14B	10.93B	8.77B
Cash Flow
Free Cash Flow	0.00	3.87B	3.12B	402.64M	2.57B	1.74B
Operating Cash Flow	0.00	5.43B	3.86B	2.49B	2.83B	1.93B
Investing Cash Flow	0.00	-2.98B	-2.49B	-1.29B	-1.45B	-1.07B
Financing Cash Flow	0.00	-2.31B	-1.69B	-1.55B	-941.79M	-471.64M

Central Depository Services (India) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1492.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CDSL, the sentiment is Negative. The current price of 1492.1 is below the 20-day moving average (MA) of 1544.52, below the 50-day MA of 1640.57, and below the 200-day MA of 1493.48, indicating a bearish trend. The MACD of -21.93 indicates Negative momentum. The RSI at 35.15 is Neutral, neither overbought nor oversold. The STOCH value of 18.27 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CDSL.

Central Depository Services (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MOTILALOFS	76 Outperform	₹554.85B	20.01		0.54%	11.16%	-1.15%
Sector *	68 Neutral	$17.69B	11.82	10.30%	3.73%	9.66%	0.42%
ANGELONE	66 Neutral	₹212.03B	22.22		1.96%	2.09%	-21.52%
GEOJITFSL	64 Neutral	₹20.07B	13.35		2.09%	4.68%	-12.79%
CDSL	63 Neutral	₹322.26B	66.50		0.84%	18.35%	3.14%
JMFINANCIL	―	₹178.37B	16.67		1.40%	―	―

Central Depository Services (India) Limited Corporate Events

CDSL Ventures to Establish New Unit in GIFT-IFSC

CDSL has announced that its subsidiary, CDSL Ventures Limited (CVL), has received a ‘No Objection’ from SEBI to establish a new business unit in the GIFT-IFSC. This development is significant as it positions CVL to expand its operations internationally within the International Financial Services Centre, enhancing its service offerings and potentially increasing its market reach.

CDSL Publishes Q1 2025 Financial Results

CDSL has announced the publication of its consolidated and standalone audited financial results for the quarter ended June 30, 2025. These results were published in the Financial Express and Loksatta newspapers and are also available on the company’s website. This announcement is part of CDSL’s compliance with the SEBI Listing Regulations, ensuring transparency and timely disclosure of financial performance, which is vital for maintaining investor confidence and industry credibility.

CDSL Partners with IIM Mumbai to Enhance Financial Market Insights Through Data Analytics

CDSL has entered into a strategic partnership with the Indian Institute of Management, Mumbai (IIM Mumbai) to leverage data analytics for deeper insights into financial markets. This collaboration aims to enhance financial market intelligence through joint consulting, research, and educational initiatives, including internships and expert sessions. The partnership is expected to drive innovation in data analysis and risk management, benefiting both the financial sector and the next generation of financial professionals.

CDSL Schedules Virtual Investor Meetings with Fidelity and Citadel

CDSL has announced a schedule for a series of virtual one-on-one meetings with major institutional investors, including Fidelity International and Citadel Asia, on June 30, 2025. These meetings are part of CDSL’s ongoing efforts to engage with analysts and investors, potentially impacting its market perception and investor relations.