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

Revenues for CDSL are forecasted to decline from last year's levels, prompting caution among investors. When revenues fall, it can have a significant negative impact on the company's bottom line, reducing profitability and making the stock less attractive to risk-averse investors.

Financial Ratios:

currentRatio 0.000000
forwardPE 52.215385
debtToEquity 0.165000
earningsGrowth -0.237000
revenueGrowth 0.029000
grossMargins 1.000000
operatingMargins 0.513620
trailingEps 23.620000
forwardEps 31.590000

CDSL'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.
CDSL's low earnings and revenue growth point to a possible reduction in profits. This trend suggests that the company may face difficulties in maintaining its profitability and could be a cause for concern among investors.
With positive gross and operating margins, Central Depository Services (India) Limited demonstrates strong profitability. This reflects the company's ability to manage costs and maintain healthy profits, showcasing effective operational efficiency and financial stability.
CDSL's forward EPS exceeding its trailing EPS means that the company is expected to increase profitability in the current financial year. This reflects improved earnings potential, signaling that CDSL is likely to outperform its previous year's financial performance.

Price projections:

Price projections for CDSL
Price projections for CDSL

CDSL's price has continuously remained near the lower end of analysts' projections, indicating that it may be facing challenges in meeting market expectations. This trend raises concerns about the company's future growth trajectory.

Recommendation changes over time:

Recommendations trend for CDSL
Recommendations trend for CDSL


The analysts' mixed ratings for CDSL indicate no clear guidance on whether to buy or sell. Investors may need to explore other data points or wait for more concrete market signals before taking any decisive action regarding CDSL.