Categories: Stock Market News

Central Depository Services Ltd; CDSL 847% Stock Returns; Should you Invest ?

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

Market Cap ₹ 22,100 Cr.
Current Price ₹ 2,115
High/Low ₹ 2,239 / 1,028
Stock PE 52.7
Industry PE 33.4
ROCE 40.2 %
ROE 31.3 %
PEG Ratio 1.77
Debt To Equity 0.00

Financial Trend

Revenue- 5 Years Comparison

  • 2020: 215 crore
  • 2024: 812 crore
  • 5 Years percentage change :

Net Profit- 5 Years Comparison

  • 2020: 106 crore
  • 2024: 419 crore
  • 5 Years percentage change:

Shareholding Pattern

Change in Shareholding Pattern

Mar-23 Dec-23 1 Year Change
Promoters + 20.00% 15.00% -5.00%
FIIs + 14.67% 18.16% 3.49%
DIIs + 18.48% 21.33% 2.85%
Public + 46.85% 45.51% -1.34%

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.
  • If you have any further queries, please comment below. We will be happy to answer all your questions.
  • If you like this information, share the article with as many people as possible

Money Minded

Creating a space where investors will be able to make wise decisions where investors will get complete idea about the Fundamental Analysis of the companies which are currently in the news.

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