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

With CDSL's revenue forecasted to drop below last year's level, investors are expected to take a cautious stance. Such declines typically affect a company's bottom line, reducing profitability and making investors hesitant to invest heavily in the company until financial performance improves.

Financial Ratios:

currentRatio 0.000000
forwardPE 55.672825
debtToEquity 0.000000
earningsGrowth -0.224000
revenueGrowth -0.022000
grossMargins 1.000000
operatingMargins 0.494080
trailingEps 25.170000
forwardEps 31.590000

CDSL's elevated forward PE ratio indicates that the stock may face limited price growth and is at risk for a correction. Investors should consider this metric alongside other fundamentals to accurately assess the stock's valuation.
Central Depository Services (India) Limited's low growth in both earnings and revenue indicates a likely decrease in profits. This suggests the company may be facing financial challenges, and investors should be cautious about its future performance.
CDSL's positive gross and operating margins indicate strong financial performance. These margins show that the company is profitable and efficient in its operations, with effective cost control contributing to its overall financial success.
Central Depository Services (India) Limited's forward EPS being higher than its trailing EPS suggests that the company is expected to generate stronger profits this year. This points to improving financial performance, with Central Depository Services (India) Limited anticipated to deliver better earnings than it did in the prior year.

Price projections:

Price projections for CDSL
Price projections for CDSL

CDSL's price projections have gradually declined, indicating growing uncertainty about the company's ability to meet previous targets. The downward trend reflects a more conservative view of CDSL's future.

CDSL's stock price has already exceeded the higher end of analysts' projections. With little room left for additional increases, this situation suggests that investors should be cautious as the stock may face challenges in maintaining its current valuation.

Recommendation changes over time:

Recommendations trend for CDSL
Recommendations trend for CDSL


Analysts are favoring Central Depository Services (India) Limited with a buy bias, highlighting the stock's potential as a solid investment. This recommendation might drive more investors to consider Central Depository Services (India) Limited as a secure and profitable option for their money, contributing to a broader positive sentiment in the market.