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

• Market Cap: ₹294.63B
• Dividend Yield: 0.82%
• Average Volume (3M): 1.79M
• Price to Earnings (P/E): 62.3
• Beta (1Y): 2.16
• Revenue Growth: 3.63%
• EPS Growth: -11.24%
• Country: IN
• Employees: 335
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 6.70
• Shares Outstanding: 209,000,000
• 10 Day Avg. Volume: 2,430,715
• 30 Day Avg. Volume: 1,785,811
• PEG Ratio: 1.85
• Price to Book (P/B): 14.21
• Price to Sales (P/S): 20.99
• P/FCF Ratio: 64.66
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: ₹1,609.00 ▲(9.56% Upside)

Central Depository Services (India) Limited demonstrates strong financial performance with robust profitability and efficient operations, which significantly contribute to its overall score. However, the technical analysis indicates neutral to bearish momentum, and the high P/E ratio suggests potential overvaluation, which negatively impacts the score. The absence of earnings call data and corporate events means these factors do not influence the final score.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market presence and effective business strategies, supporting long-term financial stability.

Cash Flow Generation

Robust cash flow generation provides financial flexibility for strategic investments and enhances the company's ability to weather economic fluctuations.

Profitability

High profitability margins reflect efficient operations and cost control, ensuring sustainable earnings and competitive advantage in the market.

Negative Factors

Debt Levels

While overall leverage is low, any increase in liabilities could impact financial stability, necessitating careful management to maintain balance sheet health.

Valuation Concerns

A high valuation could limit future stock price appreciation and may lead to increased investor scrutiny, affecting market perception and investment appeal.

Market Momentum

Neutral to bearish market momentum may reflect investor uncertainty, potentially impacting short-term investment inflows and market confidence.

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

Company Description

Central Depository Services (India) Limited provides depository services in India. The company offers various services, such as account opening, dematerialization, processing delivery and receipt instructions, account statement, re-materialization, pledging, nomination, transmission of securities, change in address, bank account details, and SMS services for depository participants. It also provides facilities to issuers to credit securities to a shareholder's or applicants demat accounts; KYC services in respect of investors in capital markets to capital market intermediaries; facilities for holding of insurance policies in electronic form to the holders of these policies; and facilities for holding and transacting in electronic negotiable warehouse receipts. In addition, it offers services, such as electronic access to security information, electronic access to security information and execution of secured transaction, e-voting, e-notices, e-locker, and mobile application. It serves investors through depository participants, issuer companies, capital market intermediaries, insurance companies, and warehouse service providers/warehouses. The company was incorporated in 1997 and is based in Mumbai, India.

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	10.84B	10.82B	8.12B	5.55B	5.51B	3.44B
Gross Profit	8.02B	8.22B	6.27B	4.22B	4.50B	2.70B
EBITDA	7.26B	7.44B	5.83B	3.85B	4.20B	2.69B
Net Income	4.95B	5.27B	4.19B	2.76B	3.11B	2.00B
Balance Sheet
Total Assets	0.00	21.62B	17.82B	14.57B	13.26B	10.84B
Cash, Cash Equivalents and Short-Term Investments	9.69B	9.56B	6.86B	5.89B	8.42B	7.44B
Total Debt	0.00	29.79M	13.56M	23.70M	2.91M	2.77M
Total Liabilities	-18.04B	3.58B	2.74B	2.00B	1.89B	1.64B
Stockholders Equity	18.04B	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: 1468.60
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 1468.6 is below the 20-day moving average (MA) of 1476.53, below the 50-day MA of 1541.65, and below the 200-day MA of 1521.22, indicating a bearish trend. The MACD of -29.18 indicates Positive momentum. The RSI at 33.05 is Neutral, neither overbought nor oversold. The STOCH value of 33.26 is Neutral, 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
ANGELONE	76 Outperform	₹212.00B	26.97	―	1.88%	-12.65%	-42.72%
GEOJITFSL	73 Outperform	₹20.23B	17.18	―	1.88%	-11.33%	-40.39%
MOTILALOFS	73 Outperform	₹483.64B	23.82	―	0.57%	-14.24%	-40.53%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
JMFINANCIL	66 Neutral	₹132.93B	11.63	―	2.93%	-10.92%	152.70%
CDSL	61 Neutral	₹294.63B	62.29	―	0.82%	3.63%	-11.24%

Central Depository Services (India) Limited Corporate Events

CDSL Shuts Trading Window Ahead of December-Quarter Results

CDSL has announced that its trading window for dealing in the company’s securities will be closed for all designated persons and their immediate relatives from 1 January 2026 until 48 hours after the company discloses its financial results for the quarter ended 31 December 2025. The move is in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct, underscoring its adherence to regulatory norms and governance standards ahead of the forthcoming quarterly earnings announcement, the date of which will be communicated separately.

CDSL Schedules Analyst Meet to Enhance Stakeholder Engagement

CDSL has announced a scheduled Analyst/Investor/Conference Call to be held on December 8, 2025, with Kotak Securities Ltd, indicating active engagement with stakeholders and transparency in its operations. This meeting, set as a virtual one-on-one session, underscores CDSL’s commitment to maintaining open communication channels with investors and analysts, potentially impacting its market perception and stakeholder relations.

CDSL Schedules Analyst Meet for December 2025

CDSL has announced an upcoming Analyst/Investor/Conference Call scheduled for December 12, 2025, organized by HDFC Securities Ltd. This virtual meeting aims to engage select investors and analysts, reflecting CDSL’s commitment to maintaining transparent communication with stakeholders and potentially impacting its market perception and investor relations.

CDSL Re-appoints Gurumoorthy Mahalingam as Chairperson

Central Depository Services (India) Limited has announced the re-appointment of Shri Gurumoorthy Mahalingam as Public Interest Director and Chairperson of the company, effective from February 27, 2026, for a three-year term. This decision, approved by the Securities and Exchange Board of India (SEBI), underscores CDSL’s commitment to leveraging Mahalingam’s extensive experience in financial market regulation and operations, which is expected to strengthen its governance and strategic direction.

CDSL Publishes Q2 and Half-Year Financial Results

CDSL announced the publication of its consolidated and standalone audited financial results for the second quarter and half-year ending September 30, 2025. These results have been published in the Financial Express and Loksatta newspapers and are also available on the company’s website. This disclosure, in compliance with SEBI Listing Regulations, reflects CDSL’s commitment to transparency and regulatory adherence, potentially impacting its market perception and stakeholder confidence.