CDSL - Swing Trade Analysis with AI Signals
Back to List📊 Swing Trade Rating: 3.5
| Stock Code | CDSL | Market Cap | 28,639 Cr. | Current Price | 1,370 ₹ | High / Low | 1,814 ₹ |
| Stock P/E | 61.2 | Book Value | 76.5 ₹ | Dividend Yield | 0.91 % | ROCE | 40.3 % |
| ROE | 31.3 % | Face Value | 10.0 ₹ | DMA 50 | 1,254 ₹ | DMA 200 | 1,351 ₹ |
| Chg in FII Hold | -1.04 % | Chg in DII Hold | -0.70 % | PAT Qtr | 68.8 Cr. | PAT Prev Qtr | 120 Cr. |
| RSI | 72.3 | MACD | 20.8 | Volume | 30,67,601 | Avg Vol 1Wk | 38,35,191 |
| Low price | 1,116 ₹ | High price | 1,814 ₹ | PEG Ratio | 3.08 | Debt to equity | 0.00 |
| 52w Index | 36.4 % | Qtr Profit Var | -14.9 % | EPS | 22.4 ₹ | Industry PE | 44.8 |
CDSL shows moderate potential for swing trading. The current price of ₹1,370 is above its 50 DMA (₹1,254) and 200 DMA (₹1,351), indicating short-term strength. RSI at 72.3 suggests overbought conditions, while MACD at 20.8 confirms bullish momentum. The company is debt-free and has strong profitability metrics (ROCE 40.3%, ROE 31.3%). However, the high P/E of 61.2 compared to industry P/E of 44.8 and PEG ratio of 3.08 highlight expensive valuations. Quarterly PAT fell by 14.9%, which raises caution.
✅ Optimal Entry Price: ₹1,300–₹1,320 (closer to 200 DMA support)
📈 Exit Strategy (if already holding): Consider booking profits near ₹1,450–₹1,500 unless momentum breaks out strongly above resistance.
🌟 Positive
- 📈 Strong ROCE (40.3%) and ROE (31.3%) indicate excellent efficiency.
- 💹 Debt-free balance sheet (Debt-to-equity ratio 0.00).
- 📊 EPS of ₹22.4 shows consistent earnings power.
- 💰 Dividend yield of 0.91% provides modest income.
⚠️ Limitation
- 📉 High P/E of 61.2 compared to industry average of 44.8.
- 📊 PEG ratio of 3.08 suggests overvaluation relative to growth.
- 📉 Quarterly PAT declined (₹120 Cr. → ₹68.8 Cr.).
- 📈 RSI at 72.3 signals overbought conditions.
📰 Company Negative News
- 📉 Decline in FII holding (-1.04%) and DII holding (-0.70%) shows reduced institutional confidence.
- 📉 Profit contraction in the latest quarter raises concerns.
📰 Company Positive News
- 📈 Debt-free status adds financial stability.
- 💹 Strong ROCE and ROE reflect operational efficiency.
🏭 Industry
- 📊 Industry P/E at 44.8 is lower than CDSL’s 61.2, suggesting overvaluation.
- 🏦 Financial infrastructure sector benefits from rising retail participation in capital markets.
✅ Conclusion
CDSL is a fair swing trade candidate with strong fundamentals and debt-free status, but valuations are stretched and technical indicators show overbought conditions. Entry around ₹1,300–₹1,320 is safer, while profit booking near ₹1,450–₹1,500 is advisable if already holding. Caution is warranted due to expensive valuations and declining quarterly profits.
Would you like me to extend this by comparing CDSL’s swing trade outlook with peers like BSE or MCX to highlight relative opportunities in the financial infrastructure space?