CDSL - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.8
| Stock Code | CDSL | Market Cap | 26,585 Cr. | Current Price | 1,272 ₹ | High / Low | 1,829 ₹ |
| Stock P/E | 55.4 | Book Value | 67.4 ₹ | Dividend Yield | 0.98 % | ROCE | 46.5 % |
| ROE | 36.3 % | Face Value | 10.0 ₹ | DMA 50 | 1,295 ₹ | DMA 200 | 1,398 ₹ |
| Chg in FII Hold | -1.04 % | Chg in DII Hold | -0.70 % | PAT Qtr | 120 Cr. | PAT Prev Qtr | 128 Cr. |
| RSI | 46.8 | MACD | 17.3 | Volume | 24,29,730 | Avg Vol 1Wk | 16,57,264 |
| Low price | 1,116 ₹ | High price | 1,829 ₹ | PEG Ratio | 2.69 | Debt to equity | 0.00 |
| 52w Index | 21.8 % | Qtr Profit Var | 14.3 % | EPS | 23.0 ₹ | Industry PE | 43.8 |
📊 CDSL is trading at ₹1,272, below its 50 DMA (₹1,295) and 200 DMA (₹1,398), reflecting short-term weakness. RSI at 46.8 indicates neutral-to-bearish momentum, while MACD at 17.3 shows a mild bullish crossover. Bollinger Bands suggest price near the lower band, signaling potential support. Volume (24,29,730) is significantly above the weekly average (16,57,264), showing strong participation despite weakness. Overall, the stock is consolidating with mixed signals.
💡 Optimal Entry Zone: ₹1,250–1,270 (near support levels).
📈 Exit Zone: ₹1,400–1,450 (resistance) with extended breakout potential toward ₹1,829 (52-week high).
🔎 Trend Status: Consolidating with mild bullish undertone; reversal possible if price sustains above 1,300–1,350 with volume support.
✅ Positive
- Debt-free balance sheet (Debt-to-equity: 0.00).
- Strong ROCE (46.5%) and ROE (36.3%) highlight excellent efficiency.
- EPS of ₹23.0 with consistent profitability.
- Volume strength above weekly average signals active market interest.
⚠️ Limitation
- High PE of 55.4 compared to industry PE of 43.8, suggesting premium valuation.
- PEG ratio of 2.69 indicates expensive growth.
- Quarterly PAT declined from ₹128 Cr. to ₹120 Cr., showing short-term earnings pressure.
- Price trading below both 50 DMA and 200 DMA signals weakness.
- Institutional holdings declined (FII -1.04%, DII -0.70%), reflecting reduced confidence.
📉 Company Negative News
- Quarterly PAT decline highlights short-term earnings weakness.
- Reduced institutional holdings add to sentiment concerns.
📈 Company Positive News
- Strong efficiency metrics (ROCE and ROE) continue to support valuation premium.
- Debt-free status provides financial stability.
🏭 Industry
- Industry PE is 43.8, lower than CDSL’s PE of 55.4, suggesting premium valuation.
- Financial services sector remains robust with increasing demand for digital depository services.
🔎 Conclusion
CDSL is consolidating below key moving averages with strong fundamentals but weaker short-term earnings and institutional sentiment. Entry near ₹1,250–1,270 offers a favorable setup, while exit near ₹1,400–1,450 is prudent unless momentum drives a breakout toward ₹1,829. Long-term investors should monitor valuation premium and earnings growth sustainability.