Company Snapshots

• Central Depository Services Limited (CDSL) are entities that hold financial securities (stocks, mutual funds, etc)  in materialized/electronic form.
• In simple terms, if you have the de-mat account then your shares are stored in electronic format in CDSL
• Central Depository Services Limited or CDSL established in 1999 & it is the first listed depository in India.
• CDSL has the Bombay Stock Exchange as the primary operating market.
• It is the first depository to cross the milestone 11.50+ crore demat accounts in 2024.
• CDSL depository market share is 75.60%
• CDSL has 65% market share in KYC registration agency (KRA)

Revenue Breakup

1) Business Segment Revenue Breakup

• Depository (79.1 % FY24 ) – Dematerialisation, rematerialisation, holding, transfer and pledge of securities in electronic form
• Data Entry and Storage (20.7 % FY24) – Centralized record keeping of KYC documents of capital market investors.
• Repository (0.2 %) – a facility to keep insurance policies/ warehouse receipts in electronic form.

2) Service Wise Revenue Breakup

• Annual Issuer Income- 27.1 %
• Transactions Charges- 25 %
• On line Data Charges – 17.8 %
• IPO / Corporate Action Income- 13.1 %
• Other Income- 16.9 %

Fundamental Analysis

Key Ratios

Financial Trend

Revenue- 5 Years Comparison

• 2020: 215 crore
• 2024: 812 crore
• 5 Years percentage change : $277.21\%$

Net Profit- 5 Years Comparison

• 2020: 106 crore
• 2024: 419 crore
• 5 Years percentage change:$295.28\%$

Shareholding Pattern

Change in Shareholding Pattern

Promoters:

• Mar-23: 20.00%
• Dec-23: 15.00%
• 1 Year Change: -5.00%
• Analysis: Promoters’ shareholding has decreased by 5%, indicating a partial divestment or reduction in their stake, possibly to raise capital or redistribute ownership.

Foreign Institutional Investors (FIIs):

• Mar-23: 14.67%
• Dec-23: 18.16%
• 1 Year Change: +3.49%
• Analysis: FIIs have increased their stake by 3.49%, reflecting growing foreign interest and confidence in the company’s performance and potential.

Domestic Institutional Investors (DIIs):

• Mar-23: 18.48%
• Dec-23: 21.33%
• 1 Year Change: +2.85%
• Analysis: DIIs have also increased their holdings by 2.85%, showing enhanced domestic institutional support and belief in the company’s growth prospects.

Public:

• Mar-23: 46.85%
• Dec-23: 45.51%
• 1 Year Change: -1.34%
• Analysis: Public shareholding has slightly decreased by 1.34%, indicating a minor reduction in retail investor participation, which could be due to market conditions or shifts in investment preferences.

Stock Price Returns

1 Year Stock Returns

• CDSL has given 1 year returns of 104.35 %
• If you would have invested 1 lakh in June 2023, it would have became 2.04 lakhs in June 2024

5 Year Stock Returns

CDSL 847% Stock Returns

• CDSL has given 1 year returns of 847.92 %
• If you would have invested 1 lakh in June 2020, it would have became 9.47 lakhs in June 2024

CSDL Valuation

• Current PE- 52.7
• Median PE- 39.9
• Company is Overvalued: As the Median PE is less than the Current PE, so we can say that company is company is slightly overvalued.

Should you Invest ?

• Central Depository Services Ltd (CDSL) has 75% market share in depository so it is dominant market player.
• CDSL is consistently increasing the Revenue & Net Profit over the last 5 years, in fact CDSL is sitting at all time high Revenue & Net Profit.
• As there is no debt so CDSL is fundamentally strong company.
• As it is smallcap company so it has massive potential to grow in the near future as well.
• Considering the current market price(CMP) of 2115, it is slightly overvalued but if you are thinking of the long term(10 years) then you should definitely go for it.
• India is going to witness massive no of retail investor money inflow in the next 5 years as youngsters has started to realize the importance of equity markets.

Check out this- Computer Age Management Services(CAMS) fundamental Analysis

Disclaimer

• Money Minded School is not a SEBI registered investment advisor, Please do your own research before investing
• This article is a complete guide about Central Depository Services Ltd. (CDSL)
• These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
• Also, We have talked in detail about the share’s future prospects and growth potential.
• Hopefully, this information will help you in your further investment.
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