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 expected to be lower than the previous year, investors may become cautious. Declining revenues often negatively impact the bottom line, reducing profitability and raising concerns among investors about the company's ability to maintain strong financial performance moving forward.

Financial Ratios:

currentRatio 2.25700
forwardPE 49.24719
debtToEquity 0.13900
earningsGrowth -0.13400
revenueGrowth -0.04800
grossMargins 1.00000
operatingMargins 0.53901
trailingEps 22.61000
forwardEps 31.59000

With a current ratio 2.257, CDSL demonstrates the ability to service its short-term debt without difficulty. The company's strong cash reserves and current assets ensure that it can meet its liabilities, reflecting financial stability and healthy liquidity.
Central Depository Services (India) Limited's low growth in earnings and revenue indicates that profits could shrink. This signals potential financial difficulties for the company, suggesting that its profitability might be under pressure.
With positive gross and operating margins, CDSL's profitability is evident. These metrics suggest the company is efficiently managing its expenses while maintaining strong revenue, highlighting a solid financial foundation.
CDSL'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 CDSL anticipated to deliver better earnings than it did in the prior year.

Price projections:

Price projections for CDSL
Price projections for CDSL

Central Depository Services (India) Limited's stock price has repeatedly hovered near the lower end of projections. This trend indicates that the company may be facing obstacles in achieving the growth anticipated by analysts.

Recommendation changes over time:

Recommendations trend for CDSL
Recommendations trend for CDSL


Central Depository Services (India) Limited has recently received a buy bias from analysts, indicating that the stock is being perceived as a favorable investment. This positive sentiment could encourage investors to see Central Depository Services (India) Limited as a wise place to allocate their funds, potentially leading to increased interest in the company's stock.