CDSL - Swing Trade Analysis with AI Signals
Last Updated Time : 20 Dec 25, 07:01 am
Back to Swing Trade ListSwing Trade Rating: 3.9
| Stock Code | CDSL | Market Cap | 31,342 Cr. | Current Price | 1,500 ₹ | High / Low | 1,966 ₹ |
| Stock P/E | 67.4 | Book Value | 67.4 ₹ | Dividend Yield | 0.84 % | ROCE | 46.5 % |
| ROE | 36.3 % | Face Value | 10.0 ₹ | DMA 50 | 1,562 ₹ | DMA 200 | 1,524 ₹ |
| Chg in FII Hold | -1.36 % | Chg in DII Hold | -0.06 % | PAT Qtr | 128 Cr. | PAT Prev Qtr | 152 Cr. |
| RSI | 38.3 | MACD | -27.6 | Volume | 10,15,587 | Avg Vol 1Wk | 9,47,591 |
| Low price | 1,047 ₹ | High price | 1,966 ₹ | PEG Ratio | 3.27 | Debt to equity | 0.00 |
| 52w Index | 49.2 % | Qtr Profit Var | -25.5 % | EPS | 22.3 ₹ | Industry PE | 53.3 |
📊 CDSL shows strong fundamentals with high ROCE (46.5%) and ROE (36.3%), supported by zero debt. However, technical indicators like RSI (38.3) and negative MACD (-27.6) suggest bearish momentum in the short term. The stock is trading below its 50 DMA (1,562 ₹) and 200 DMA (1,524 ₹), indicating weakness. Despite this, long-term fundamentals remain solid, making it a cautious swing trade candidate.
💡 Optimal Entry Price: Around 1,450–1,470 ₹ (close to support zone).
🚪 Exit Strategy: If already holding, consider exiting near 1,560–1,580 ₹ (resistance at 50 DMA) or trail stop-loss below 1,450 ₹ to protect downside.
✅ Positive
- 📈 High ROCE (46.5%) and ROE (36.3%) reflect strong operational efficiency.
- 💰 Zero debt ensures financial stability.
- 📊 52-week return of 49.2% highlights strong past performance.
⚠️ Limitation
- 📉 High P/E (67.4) compared to industry PE (53.3), suggesting overvaluation.
- 📊 PEG ratio of 3.27 indicates valuation is stretched relative to growth.
- 📉 Trading below key moving averages signals weak technical strength.
🚨 Company Negative News
- 📉 PAT declined from 152 Cr. to 128 Cr. in the latest quarter (-25.5%).
- 📉 FII holding reduced (-1.36%), showing foreign investor caution.
- 📉 DII holding reduced (-0.06%), reflecting slight domestic institutional weakness.
🌟 Company Positive News
- 📈 EPS at 22.3 ₹ supports earnings visibility.
- 💡 Dividend yield of 0.84% provides steady income.
🏭 Industry
- 📊 Industry PE at 53.3, lower than CDSL’s PE, suggesting sector trades at premium valuations.
- 📈 Strong sector momentum with digital financial services driving growth.
📌 Conclusion
CDSL is a moderately attractive swing trade candidate with strong fundamentals but weak short-term technicals. Entry near 1,450–1,470 ₹ offers a favorable risk-reward setup, while exits should be targeted around 1,560–1,580 ₹. Caution is advised due to declining profits and reduced institutional interest, but long-term prospects remain supportive.
I can also prepare a comparison of CDSL with another financial services stock to highlight relative swing trade opportunities.
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