Central Depository Services (CDSL)
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Central Depository Services (CDSL) is positioned for a volume-led growth recovery, supported by management's strategic shift towards leveraging its established technology platform. Key developments include a revival in primary market activity and the normalization of operating costs, which are expected to drive revenue growth and margin expansion. Despite facing regulatory challenges and rising operational expenses, CDSL's strong market share in BO accounts and its asset-light model provide a defensive advantage. Vista's financial outlook anticipates stable revenue growth and improving margins, aligning with management's expectations of double-digit earnings growth through FY29. The industry context, characterized by a sunrise growth phase and improving pricing power, further supports this outlook. However, potential headwinds include regulatory changes impacting KYC pricing and market volatility affecting trading volumes. Over the next 12-24 months, CDSL's focus on technology investments and the integration of new revenue streams will be critical for sustaining growth. Key opportunities lie in the deepening of the securities market and onboarding unlisted companies, while watchpoints include the impact of regulatory transitions and operational cost pressures
Why We Like This Stock
- Management's focus on leveraging an established technology platform is expected to drive revenue growth and margin expansion
- The revival of primary market activity and normalization of operating costs are key growth drivers
- CDSL's strong market share in BO accounts and asset-light model provide a defensive advantage
Things To Watch Out For
- Regulatory changes impacting KYC pricing may pose risks to revenue stability
- Rising operational expenses could pressure margins in the near term
- Market volatility may affect trading volumes and overall performance
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 812 | 1,082 | 1,145 | 1,161 | 1,316 |
| Profit Before Tax (Cr.) | 556 | 695 | 609 | 617 | 707 |
| PBT Margin | 68.5% | 64.2% | 53.2% | 53.1% | 53.8% |
| Net Profit (Cr.) | 433 | 533 | 457 | 465 | 532 |
| Earnings Per Share | 20.7 | 25.5 | 21.9 | 22.2 | 25.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| HDFC Securities | ▲ Buy | 1,620 | 15-Sep-2026 |
| Jeffries | ► Hold | 1,315 | 10-Sep-2026 |
| ICICI Securities | ▼ Reduce | 1,140 | 11-Aug-2026 |
| JPMorgan | ▼ Underweight | 1,200 | 03-Aug-2026 |
| Motilal Oswal | ► Neutral | 1,200 | 03-Aug-2026 |
| Kotak Securities | ► Add | 1,370 | 06-May-2026 |
| Axis Securities | ► Hold | 1,425 | 16-Apr-2026 |
Company Overview
Show Company Profile
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 provides 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 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.