Overall Fundamental outlook

Business Operations:

Sector: Financial Services
Industry: Capital Markets

Central Depository Services (India) Limited, together with its subsidiaries, provides depository services in India. It operates through Depository; Data Entry and Storage; and Repository segments. The Depository segment offers various services to investors, such as dematerialisation, rematerialisation, holding, transfer, and pledge of securities in electronic form; and e-voting services to companies. Its Data Entry and Stroage segment provides centralized record keeping of KYC document of capital market investors. The Repository segment offers policyholders/warehouse receipt holders a facility to keep insurance policies/warehouse receipts in electronic form and to undertake changes, modifications, and revisions in the policy/receipt. It also provides account opening, processing delivery and receipt instructions, pledging, nomination, transmission of securities, change in address, bank account details, and SMS services for depository participants (DPs). In addition, the company offers various services, such as electronic access to security information, electronic access to security information and execution of secured transaction, SMS alerts related to transactions, electronic consolidated account statements, and virtual annual general meetings; Myeasi mobile application; application programming interfaces for DPs, electronic delivery instruction slip, and electronic margin pledge; and electronic foreign investment monitoring, electronic system driven disclosure services, and electronic notices, as well as e-locker services. Further, it provides KYC registration agency, eKYC, electronic signature service, tax filing, stamp duty calendar, electronic negotiable warehouse receipts and electronic non-negotiable warehouse receipts, and electronic insurance account. The company serves market participants, exchanges, clearing corporations, DPs, issuers, and investors. Central Depository Services (India) Limited was incorporated in 1997 and is based in Mumbai, India.

Revenue projections:

Revenue projections for CDSL
Revenue projections for CDSL

CDSL's revenue projections indicate a decrease from last year's performance, which could lead to investor caution. A fall in revenue is likely to negatively impact the company's profitability, causing concern for shareholders who may view this as a signal of declining financial health.

Financial Ratios:

currentRatio 0.000000
forwardPE 50.772682
debtToEquity 0.165000
earningsGrowth -0.237000
revenueGrowth 0.029000
grossMargins 1.000000
operatingMargins 0.513620
trailingEps 23.730000
forwardEps 31.590000

Central Depository Services (India) Limited's forward PE is too high, potentially limiting future gains and posing a risk of a price correction. This valuation must be carefully considered with other fundamental metrics to evaluate whether the stock is worth its current price.
Central Depository Services (India) Limited's low growth in earnings and revenue indicates a potential decline in profits. This suggests that the company could be facing financial challenges, making it harder to sustain its current profit margins.
Positive gross and operating margins for CDSL suggest that the company is operating profitably. These margins highlight CDSL's efficiency in managing costs while maintaining healthy revenue streams, contributing to its overall financial strength.
CDSL's forward EPS being higher than its trailing EPS signals anticipated growth in profitability for the current financial year. This suggests that CDSL is on track to improve its earnings, outpacing the previous year's performance and reflecting positive market expectations.

Price projections:

Price projections for CDSL
Price projections for CDSL

The stock price of Central Depository Services (India) Limited has frequently been close to the lower end of analysts' projections. This trend indicates potential struggles for the company in achieving the growth anticipated by the market.

Recommendation changes over time:

Recommendations trend for CDSL
Recommendations trend for CDSL


A recent sell bias from analysts toward CDSL suggests caution, but investors should look beyond this sentiment. It's advisable to consider a broad range of market indicators to make well-informed decisions, ensuring a deeper understanding of the stock's potential and market behavior.