CDSL - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Fundamental Analysis: Central Depository Services (India) Ltd (CDSL) Fundamental Rating: 4.2

💰 Core Financials

Profit Growth

PAT rose modestly (₹100 Cr to ₹102 Cr), but Qtr Profit Var shows -23.7%—may reflect seasonality or subdued transaction volumes.

EPS: ₹23.7 — strong earnings relative to industry peers.

Returns

ROE: 32.7%, ROCE: 42.0% ➜ phenomenal metrics—sign of efficient capital use.

Debt Profile

Debt-to-Equity: 0.00 ➜ debt-free balance sheet—excellent.

📈 Valuation Indicators

Metric Value Commentary

P/E Ratio 65.1 Expensive—premium for growth & stability

P/B Ratio ~18.3 (1,540 ₹ / 84.2 ₹) ➜ high valuation, implies market confidence

PEG Ratio 3.39 Overvalued when factoring growth

Industry PE 51.3 CDSL trading above sector average

🔍 Conclusion: Valuation is rich. Investors are pricing in sustained dominance and future growth.

🏢 Business Model & Moat

India’s only listed depository; enables electronic holding of securities.

High entry barriers due to regulatory approvals and infrastructure complexity.

Monopoly-like position with exponential demat account growth in retail investing.

Institutional sentiment

FII ↑ 1.56% ➜ strong conviction.

DII ↓ 1.17% ➜ minor reallocation possibly due to valuations.

📉 Technical Overview

RSI: 32.0 ➜ approaching oversold—reversal may be near.

MACD: -25.2 ➜ weakness in momentum, bearish crossover confirmed.

Trading below 50 DMA (₹1,636) but above 200 DMA (₹1,464) ➜ neutral setup, but trending downward.

✅ Suggested Entry Zone: ₹1,450–₹1,520 🚦 Watch for stabilization before entry; market sentiment is key.

📅 Long-Term Holding Guide

A compelling play on financial digitization and retail investing boom in India.

Long-term moat supported by government backing, tech infrastructure, and rise of direct equity participation.

Hold if

You believe in digital infrastructure expansion.

You're comfortable with high valuations justified by growth.

You’re investing for long-term compounding, not short-term returns.

Curious how CDSL stacks against competitors like NSDL (non-listed) or fintech disruptors? I can sketch out a strategic landscape for you!

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