Central Depository Services Limited (CDSL) stands as a formidable Market Infrastructure Institution (MII), seamlessly providing its comprehensive suite of services to all stakeholders within the capital market structure. Its role as a facilitator in the dematerialization of securities and a catalyst for secure securities transactions is paramount.
With an impressive market capitalization of ₹18,914 Crores, CDSL empowers investors, exchanges, clearing corporations, depository participants (DPs), and issuers to hold and trade a diverse array of electronic securities. This encompassing portfolio includes equities, debentures, bonds, units of mutual funds, Certificates of Deposit (CDs), commercial papers (CPs), Treasury Bills (TBills), and a myriad of others.
Additionally, CDSL offers a range of cutting-edge services like e-Voting, M-Voting, the innovative Myeasi Mobile App, and the secure e-Locker, further enhancing convenience and accessibility for market participants.
As of 28th November 2023, CDSL is trading at a share price of Rs. 1810.
CDSL in Recent News and Important Stats: December 2023
- 22nd November 2023: CDSL has achieved the milestone of registering 10 Crore Demat accounts, making it the first depository to do so.
- In September 2023, CDSL reported net sales of Rs 207.31 crore, marking a YoY increase of 39.19%.
- CDSL posted a 35% YoY increase in profit in the second quarter. The company’s profit for the quarter ending in September reached Rs 109 crore, representing a substantial growth of 35.4% compared to the previous year.
Well, you can use any brokerage firm like Zerodha, SBI Securities, Groww, Upstox to buy CDSL shares. However, I personally use PayTM Money, because of low brokerage fees. I am also able to invest in mutual funds directly through the platform. Plus, I like the simple UI.
CDSL SHARE PRICE TARGET 2023 – 2030
CDSL SHARE PRICE TARGET 2023
| When | Maximum Price | Minimum Price |
| December 2023 | ₹1,989.65 | ₹1,672.41 |
CDSL, renowned as India’s largest securities depository in terms of its extensive number of accounts, stands out with its remarkable market position and notable achievements. Not only does CDSL exhibit the highest share of incremental growth in demat accounts, but it also boasts the largest number of registered Depository Participants (DPs) within the Depository Business.
Notably, in November 2023, CDSL announced that the company had achieved the milestone of being the first depository to register 100 million Demat accounts.
As a result, this will have a direct impact on the revenues and profits to be posted in the coming quarters.
With the projected share price targets for 2023, ranging from a maximum of ₹1,989.65 to a minimum of ₹880.90, CDSL’s promising outlook signals the potential for continued growth and reinforces investor confidence in the company’s consistent performance within the securities market.
The maximum CDSL share price target for December 2023 is ₹1,989.65
CDSL minimum share price target for December 2023 is ₹1,672.41.
CDSL stock price is up 31.70% in the last 30 days.
CDSL SHARE PRICE TARGET 2024
| When | Maximum Price | Minimum Price |
| January 2024 | ₹1,909.63 | ₹1,315.10 |
| February 2024 | ₹1,849.62 | ₹1,384.32 |
| March 2024 | ₹1,809.60 | ₹1,453.54 |
| April 2024 | ₹1,687.14 | ₹1,297.80 |
| May 2024 | ₹1,533.76 | ₹1,179.82 |
| June 2024 | ₹1,687.14 | ₹1,297.80 |
| July 2024 | ₹1,606.80 | ₹1,236.00 |
| August 2024 | ₹1,673.75 | ₹1,287.50 |
| September 2024 | ₹1,757.44 | ₹1,351.87 |
| October 2024 | ₹1,862.88 | ₹1,432.99 |
| November 2024 | ₹1,993.29 | ₹1,533.30 |
| December 2024 | ₹2,033.15 | ₹1,563.96 |
With robust connectivity established with leading clearing corporations such as Indian Clearing Corporation Limited (ICCL), NSE Clearing Limited (NCL), Metropolitan Clearing Corporation of India Limited (MCCIL), Multi Commodity Exchange Clearing Corporation Ltd., and National Commodity Clearing Limited (NCCL), CDSL solidifies its position as a reliable and indispensable market participant.
Looking ahead to 2024, CDSL’s share price targets exhibit promising potential, with projected maximum prices ranging from ₹2,033.15 to ₹1179 minimum. These projections indicate a positive outlook for the company, reflecting sustained growth and investor confidence in CDSL’s performance within the securities market. With a strong foundation of connectivity and favorable financial projections, CDSL is poised to continue its upward trajectory in the coming years.
CDSL SHARE PRICE TARGET 2025
| When | Maximum Price | Minimum Price |
| January 2025 | ₹2,257.52 | ₹1,180.46 |
| February 2025 | ₹2,375.57 | ₹1,283.10 |
| March 2024 | ₹2,490.47 | ₹1,296.06 |
| April 2025 | ₹2,354.98 | ₹1,178.24 |
| May 2025 | ₹2,129.15 | ₹981.87 |
| June 2025 | ₹2,354.98 | ₹1,178.24 |
| July 2025 | ₹2,151.73 | ₹1,001.50 |
| August 2025 | ₹2,266.90 | ₹1,101.65 |
| September 2025 | ₹2,330.25 | ₹1,156.74 |
| October 2025 | ₹2,565.00 | ₹1,360.87 |
| November 2025 | ₹2,643.25 | ₹1,428.91 |
| December 2025 | ₹2,676.11 | ₹1,457.49 |
With an impressive array of business segments, including Depository services encompassing dematerialization, rematerialization, secure holding, transfer, and pledge of securities in electronic form, along with e-voting services, CDSL continues to assert its dominance in the market. The company’s Data Entry and Storage segment offers centralized record-keeping of KYC documents for capital market investors, bolstering its reputation as a reliable custodian.
Moreover, CDSL’s Repository services cater to policyholders and warehouse receipts, facilitating the electronic storage of insurance policies and warehouse receipts while efficiently handling necessary changes. Supported by robust financial projections for 2025, which indicate a maximum share price of ₹2,676.11 and a minimum of ₹981.87, CDSL’s upward trajectory appears promising, bolstering investor confidence in the company’s consistent performance and sustained growth in the securities market.
CDSL SHARE PRICE TARGET 2026 – 2030
| When | Maximum Price | Minimum Price |
| 2026 | ₹2,434.81 | ₹1,494.37 |
| 2027 | ₹2,848.29 | ₹1,643.80 |
| 2028 | ₹3,287.61 | ₹1,643.80 |
| 2029 | ₹3,846.41 | ₹1,423.21 |
| 2030 | ₹4,415.69 | ₹2,390.99 |
Based on the financial projections, it is advisable to consider the potential share price targets for CDSL from 2026 to 2030. These projections indicate an upward trend in the company’s share price, with maximum prices ranging from ₹4,415.69 to ₹2,434 and minimum prices ranging from ₹2,390.99 to ₹1,423.21. It is important to note that these projections are subject to market conditions and various factors that may impact the performance of the stock.
In March 2021, CDSL had investments worth ₹709 crores in various mutual funds and fixed-income instruments. The company’s focus is on digitizing its operations and offering a single demat account that holds all financial assets across regulators, aligning with the Finance Minister’s announcements in the Union Budget.
Furthermore, CDSL, along with other Market Infrastructure Institutions (MIIs), has established India International Bullion Holding IFSC Limited to handle exchange, clearing, depository, and oversight functions, primarily focusing on the bullion business in the International Financial Services Centre (IFSC). It is anticipated that this new venture will initially deal with gold and subsequently expand into other precious metals and commodities, subject to approval by IFSCA.
CDSL FINANCIAL CONDITION: LAST 5 YEARS
| 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|
| Sales Crore INR |
196 | 215 | 344 | 551 | 555 |
| Expenses Crore INR |
87 | 125 | 132 | 186 | 236 |
| Operating Profit Crore INR |
109 | 89 | 212 | 366 | 319 |
| OPM % | 56% | 42% | 62% | 66% | 57% |
| Other Income Crore INR |
49 | 59 | 57 | 55 | 66 |
| Interest Crore INR |
0 | 0 | 0 | 0 | 0 |
| Depreciation Crore INR |
10 | 12 | 9 | 11 | 19 |
| Profit before Tax Crore INR |
148 | 136 | 260 | 409 | 365 |
| Tax % | 23% | 22% | 22% | 24% | 24% |
| Net Profit Crore INR |
115 | 107 | 201 | 312 | 276 |
| EPS (Rs) | 10.86 | 10.16 | 19.17 | 29.78 | 26.41 |
| Dividend Payout % | 37% | 44% | 47% | 50% | 61% |
Central Depository Services Limited (CDSL) has demonstrated a commendable financial performance over the past five years. With a CAGR of 21.8%, the company has achieved substantial profit growth, indicating its ability to effectively capitalize on market opportunities. CDSL’s sales have shown consistent upward momentum, reaching ₹555 crore in 2023 from ₹196 crore in 2019. The company has efficiently managed its expenses while maintaining a healthy operating profit margin (OPM) ranging from 42% to 66%.
Furthermore, CDSL’s focus on diversifying income streams is evident through its consistent generation of additional revenue from other sources. With prudent financial management practices, minimal interest expenses, and controlled depreciation costs, CDSL has consistently delivered solid profits before tax. The company has maintained a stable tax percentage and a healthy dividend payout ratio, which increased to 61% in 2023. These factors, coupled with the significant growth in earnings per share (EPS), underscore the favorable investment prospects for CDSL.
FAQS
The current trading value of CDSL’s shares stands at ₹1,809 (November 28 2023).
WHAT IS CDSL’S PE RATIO AS OF SEPTEMBER 2023?
In September 2023, CDSL’s price-to-earnings (PE) ratio was recorded at 59.08
WHAT IS CDSL’S PAT TREND IN RECENT YEARS?
CDSL has experienced a positive trajectory in its Profit After Tax (PAT) over the years 2019 to 2023, with a steady increase in figures from 115 to 276.
CDSL’s share price target for the year 2025 is INR 2,676.11
WHAT IS THE PROJECTED TARGET FOR CDSL’S SHARE PRICE IN THE YEAR 2030?
Based on our analysis, the projected target for CDSL’s share price in 2030 stands at Rs. 4,415.69.
WHAT IS CDSL’S MARKET POSITION?
CDSL holds a dominant market position in the Indian securities depository industry, being the largest in terms of both the number of accounts and registered depository participants (DPs), exhibiting significant incremental growth and exemplifying industry leadership.
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CONCLUSION
In conclusion, CDSL has established itself as the leading securities depository in India, boasting the largest number of demat accounts and registered depository participants. A significant achievement for the company was surpassing 3 crore demat accounts in FY21, solidifying its position as a market leader.
This company is one of my favorite small-cap stocks that I hold in my portfolio. I also plan to be holding this stock for a longer period (more than 2-3 years).
With subsidiaries like CVL, CDSL has made strides in the field of digitized KYC records, setting a precedent as the first and largest KYC Registration Agency in the country.
Additionally, the company’s focus on leveraging blockchain technology to enhance transparency in the handling of secured instruments showcases its commitment to innovation.
CDSL’s diverse investments in mutual funds and fixed-income instruments demonstrate a prudent approach to financial management. The recent divestment approval for CDSL IFSC Limited reflects the company’s strategic decisions to optimize its holdings.
Overall, CDSL remains at the forefront of the depository business, continually adapting to market demands and solidifying its position in the industry.
Last updated: 27th November, 2023
What did we learn?
- 1 CDSL in Recent News and Important Stats: December 2023
- 2 How to purchase CDSL Share?
- 3 CDSL SHARE PRICE TARGET 2023 – 2030
- 4 CDSL FINANCIAL CONDITION: LAST 5 YEARS
- 5 FAQS
- 5.1 WHAT IS THE CURRENT SHARE PRICE OF CDSL?
- 5.2 WHAT IS CDSL’S PE RATIO AS OF SEPTEMBER 2023?
- 5.3 WHAT IS CDSL’S PAT TREND IN RECENT YEARS?
- 5.4 WHAT IS CDSL’S SHARE PRICE TARGET FOR THE YEAR 2025?
- 5.5 WHAT IS THE PROJECTED TARGET FOR CDSL’S SHARE PRICE IN THE YEAR 2030?
- 5.6 WHAT IS CDSL’S MARKET POSITION?
- 6 CONCLUSION
