Shares of Central Depository Services (India) Ltd (CDSL) have experienced a significant decline, dropping over 19% in the past six months to close at Rs 1,242. This sustained selling pressure comes after a period of strong gains and follows the company's mixed financial performance for the March 2025 quarter.
Q4 Performance Overview
CDSL reported a 21% year-on-year (YoY) decline in net profit, which fell to Rs 80 crore in Q4 FY25, compared to Rs 100 crore in the same quarter last year. However, the company saw a positive trend in revenue, which increased by 17% YoY to Rs 262.85 crore from Rs 224.49 crore. EBITDA also grew by 6.7% to Rs 116.75 crore.
Total income for the quarter stood at Rs 268 crore, a modest 5% increase from the previous year, but a 20% sequential drop from the December 2024 quarter, indicating some moderation in business momentum.
Despite the mixed financial results, CDSL's board approved a final dividend of Rs 12.75 per share for FY26. Operationally, the company achieved a significant milestone, becoming the first depository to surpass 18 crore demat accounts as of March 31, 2026. This represents an addition of approximately 2.71 crore new accounts during FY26, underscoring continued strong retail participation in the capital markets.
Analyst Outlook and Recommendations
The recent CDSL shares decline has led to varied opinions among market analysts:
- Kranthi Bathini, Equity Strategist at WealthMills Securities: Suggests accumulating CDSL for a medium- to long-term perspective, citing the company's market infrastructure and depository nature as offering decent value.
- Ravi Singh, Chief Research Officer at Mastertrust: Notes that CDSL took a significant hit and failed to breach resistance between Rs 1,364 and Rs 1,413. He advises caution, recommending traders to sit on the sidelines as the stock tests its foundational base between Rs 1,196 and Rs 1,220. A close below Rs 1,196 could trigger further selling.
- AR Ramachandran, Sebi-registered research analyst at Tips2trades: Views CDSL as bearish on daily charts with strong resistance at Rs 1,272. A daily close below Rs 1,249 support could lead to a fall towards Rs 1,196.
- Vatsal Bhuva, Technical Analyst at LKP Securities: Points out that the stock has broken below its crucial support of Rs 1,255, indicating renewed selling pressure and a potential drift towards the Rs 1,200 support level.
Investors are advised to consult with a qualified financial advisor before making any investment decisions, as this information is for informational purposes only and not investment advice.