CDSL - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.8
| Stock Code | CDSL | Market Cap | 24,959 Cr. | Current Price | 1,194 ₹ | High / Low | 1,829 ₹ |
| Stock P/E | 52.0 | Book Value | 67.4 ₹ | Dividend Yield | 1.05 % | ROCE | 46.5 % |
| ROE | 36.3 % | Face Value | 10.0 ₹ | DMA 50 | 1,315 ₹ | DMA 200 | 1,436 ₹ |
| Chg in FII Hold | 0.86 % | Chg in DII Hold | 0.94 % | PAT Qtr | 120 Cr. | PAT Prev Qtr | 128 Cr. |
| RSI | 39.0 | MACD | -38.7 | Volume | 19,09,124 | Avg Vol 1Wk | 20,22,185 |
| Low price | 1,080 ₹ | High price | 1,829 ₹ | PEG Ratio | 2.52 | Debt to equity | 0.00 |
| 52w Index | 15.3 % | Qtr Profit Var | 14.3 % | EPS | 23.0 ₹ | Industry PE | 44.6 |
📊 CDSL shows moderate potential for swing trading. The RSI at 39.0 indicates oversold conditions, suggesting possible rebound, while MACD (-38.7) reflects short-term weakness. Strong ROCE (46.5%) and ROE (36.3%) highlight excellent efficiency, and debt-free status adds financial stability. However, valuation is expensive with a P/E of 52 compared to industry PE of 44.6, and PEG ratio of 2.52 suggests limited growth-adjusted value. Quarterly PAT declined slightly (₹120 Cr. vs ₹128 Cr.), but institutional holdings increased, showing confidence.
💡 Optimal Entry Price: Around ₹1,150–1,170, near support levels and below the 50 DMA (₹1,315).
📈 Exit Strategy (if already holding): Consider booking profits near ₹1,300–1,320, aligning with the 50 DMA resistance zone.
✅ Positive
- Strong ROCE (46.5%) and ROE (36.3%) indicate excellent efficiency.
- Debt-free balance sheet reduces financial risk.
- EPS of ₹23.0 supports earnings strength.
- Institutional holdings increased (FII +0.86%, DII +0.94%).
⚠️ Limitation
- High P/E (52.0) compared to industry average (44.6).
- PEG ratio of 2.52 suggests limited growth-adjusted value.
- Dividend yield at 1.05% is modest.
- Quarterly PAT declined from ₹128 Cr. to ₹120 Cr.
📉 Company Negative News
- No major negative news reported, but recent earnings decline raises caution.
📈 Company Positive News
- Strong efficiency metrics and debt-free status.
- Institutional inflows reflect investor confidence.
🏭 Industry
- Industry PE is 44.6, lower than CDSL’s 52, suggesting relative overvaluation.
- Financial infrastructure sector benefits from rising demand for digital securities and compliance services.
🔎 Conclusion
CDSL is a fair candidate for swing trading with entry near ₹1,150–1,170 and exit around ₹1,300–1,320. Strong fundamentals and institutional support are positives, but high valuation and short-term weakness limit upside. Suitable for traders seeking rebound opportunities with moderate risk appetite.