CDSL - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.8
| Stock Code | CDSL | Market Cap | 25,880 Cr. | Current Price | 1,238 ₹ | High / Low | 1,829 ₹ |
| Stock P/E | 55.3 | Book Value | 76.5 ₹ | Dividend Yield | 1.01 % | ROCE | 40.3 % |
| ROE | 31.3 % | Face Value | 10.0 ₹ | DMA 50 | 1,293 ₹ | DMA 200 | 1,397 ₹ |
| Chg in FII Hold | -1.04 % | Chg in DII Hold | -0.70 % | PAT Qtr | 68.8 Cr. | PAT Prev Qtr | 120 Cr. |
| RSI | 42.1 | MACD | 10.4 | Volume | 47,40,623 | Avg Vol 1Wk | 25,71,272 |
| Low price | 1,116 ₹ | High price | 1,829 ₹ | PEG Ratio | 2.78 | Debt to equity | 0.00 |
| 52w Index | 17.1 % | Qtr Profit Var | -14.9 % | EPS | 22.4 ₹ | Industry PE | 42.3 |
Analysis: CDSL has strong fundamentals with ROCE at 40.3% and ROE at 31.3%, supported by a debt-free balance sheet. However, valuation is expensive with a P/E of 55.3 compared to industry PE of 42.3, and PEG ratio of 2.78 suggests limited growth relative to valuation. Technicals are weak: RSI at 42.1 (near oversold), price below both 50 DMA (1,293 ₹) and 200 DMA (1,397 ₹), though MACD remains slightly positive. Quarterly PAT declined from 120 Cr. to 68.8 Cr. (-14.9%), raising short-term concerns.
Optimal Entry Price: Around 1,180–1,200 ₹ (near support zone).
Exit Strategy: If already holding, consider profit booking near 1,300–1,350 ₹ resistance, or exit if price falls below 1,150 ₹.
✅ Positive
- Strong ROCE (40.3%) and ROE (31.3%).
- Debt-free balance sheet (Debt-to-equity 0.00).
- EPS of 22.4 ₹ supports valuation strength.
- High trading volume above weekly average, showing investor interest.
⚠️ Limitation
- High P/E ratio (55.3) compared to industry average.
- PEG ratio of 2.78 indicates overvaluation relative to growth.
- Quarterly PAT declined by 14.9%.
- Price trading below both 50 DMA and 200 DMA.
📉 Company Negative News
- FII holdings decreased (-1.04%).
- DII holdings decreased (-0.70%).
📈 Company Positive News
- Strong fundamentals with high efficiency ratios.
- Dividend yield of 1.01% provides some income support.
🏭 Industry
- Industry PE is 42.3, lower than CDSL’s 55.3, showing premium valuation.
- Financial services sector remains resilient, supported by rising retail participation in capital markets.
📝 Conclusion
CDSL is a moderate swing trade candidate with strong fundamentals but expensive valuation and weak technicals. Entry near 1,180–1,200 ₹ offers a favorable risk-reward setup, with profit booking near 1,300–1,350 ₹ advisable. Caution is warranted due to declining profits and reduced institutional holdings.