CDSL
CDSL
Capital Markets F&OKey Fundamentals
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Key Insights
Strengths
5- Company has reduced debt.
- Company is almost debt free.
- Company has a good return on equity (ROE) track record: 3 Years ROE 29.2%
- Company has been maintaining a healthy dividend payout of 54.3%
- Company's median sales growth is 23.7% of last 10 years
Weaknesses
2- Stock is trading at 13.2 times its book value
- Promoter holding is low: 15.0%
Growth Rate
AI Analysis — Bull vs Bear
CDSL is one of India's two securities depositories and has a market capitalisation of about ₹27,626 Cr. It trades at 58.7x earnings and 14.08x book value. Revenue has grown at a 27% CAGR over 3 and 5 years and ROE has averaged 29% over 3 years, but trailing growth has slowed: TTM sales are up 9% and TTM profit is down 5%. The stock has returned -10% over the past year and 25% CAGR over three years.
- Sales have grown quickly for a long time: 27% CAGR over both 3 and 5 years, 25% over 10 years, and a 10-year median sales growth of 23.7%.
- Returns on capital have stayed high. ROE averaged 29% over 3 and 5 years, 26% over 10 years, and was 25% last year. This fits an asset-light business model.
- The company is almost debt-free and has reduced its debt further. That leaves it with little financial risk and room to reinvest or return cash to shareholders.
- It pays out a healthy 54.3% of profit as dividends, for a yield of 0.97%. That payout level is possible while still growing because the business needs little capital.
- Profit has compounded at 18% over 3 and 5 years and 21% over 10 years, which shows earnings growth that has lasted through several market cycles.
- India has only two depositories, so this is a regulated duopoly with high entry barriers. The long-term growth figures (25% 10-year sales CAGR) point to steady structural gains from more Indians opening demat accounts.
- Shareholders have done well over the medium term, with a 25% 3-year stock CAGR and 15% over 5 years.
- The valuation is rich at 58.7x earnings and 14.08x book value. The stock is priced for strong growth, so any slowdown could hit it hard.
- Earnings momentum has weakened. TTM profit is down 5% against an 18% 3-year CAGR, and TTM sales growth has slowed to 9% from a 27% 3-year CAGR.
- A PE of 58.7 next to TTM profit growth of -5% means investors are paying a high multiple for earnings that are currently shrinking.
- ROE has been sliding: 25% last year versus a 29% 3-year average. This may mean profitability is under pressure or equity is building up.
- Revenue is cyclical because it depends on capital market activity, IPO volumes and retail participation. The 9% TTM sales growth shows how quickly growth can slow when markets cool.
- Promoter holding is low at 15.0%. That leaves no single dominant anchor shareholder, and ownership is shaped by regulatory rules on depository holdings.
- The stock has fallen 10% over the past year, which suggests the market is already pricing in weaker growth. The high multiples leave room for further de-rating.
- The regulatory risk is structural. Because it is a SEBI-regulated market infrastructure institution, changes to fees, charges or rules could directly hit revenue and its 25-29% ROE.
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
- Jefferies Hold, ₹1,315 target Sep 10
Jefferies kept its 'hold' rating with a ₹1,315 target, about 7% below the previous close of ₹1,414.90. It says IPO tailwinds are already priced in.
- NSDL listing erodes scarcity premium Sep 10
NSDL's listing has reduced CDSL's scarcity premium, and competition is narrowing the margin gap between the two depositories. Jefferies says this limits valuation expansion.
- Price cuts in transaction, KRA charges Sep 10
CDSL has faced price deflation in transaction and KRA charges, which Jefferies cites as one of three factors capping the stock's multiple.
- Valuation above target multiple Sep 10
The stock trades at 50x one-year forward EPS, above Jefferies' target multiple of 41x FY27 estimated earnings, which leaves limited upside.
- Weaker IPO-to-demat link Sep 10
Jefferies notes that the relationship between IPO activity and demat account additions has weakened over the past 12 months.
- Split analyst consensus implies downside Sep 10
Of 15 analysts, 6 rate it buy, 4 hold and 5 sell. Consensus price targets imply 4.2% downside from current levels.
- Demat additions hit 2025 high Sep 10
India added nearly 33 lakh demat accounts in August, taking the total to 23.77 crore. That is the highest monthly addition since January and the third straight month of growth.
- 19% EPS CAGR projected Sep 10
Jefferies expects EPS to grow at a 19% CAGR over two years, rising from ₹22 in FY26 to ₹35 in FY29. Operating revenue is projected to go from ₹11 bn to ₹18 bn and EBITDA from ₹5.9 bn to ₹9.5 bn.
- IPO pipeline adds 3-4% earnings Sep 10
Large upcoming IPOs could create about 14.6 mn new folios, roughly 4% of FY26 folios, and add 3-4% to earnings. They could generate about ₹190 mn in revenue, ₹143 mn in net income and at least ₹30 mn in IPO charges.
- EBITDA margin expansion of 215 bps Sep 10
Slower growth in technology costs plus operating leverage could expand EBITDA margin by about 215 bps by FY29.
- MTF pledge income upside Sep 10
IPO-driven growth in the margin trading facility could add pledge income worth 2-3% of standalone revenue.
- Valuation below historical peak Sep 10
At 50x one-year forward EPS, CDSL trades well below its historical peak multiple of about 80x, though still above Jefferies' 41x target multiple.
- Upside risk from stronger IPOs Sep 10
Jefferies flags stronger-than-expected IPO activity as the key risk to its cautious view, since it could lift folio additions, issuer charges and IPO income.
TL;DR: CDSL's fundamentals look solid: demat additions hit about 33 lakh in August, a 2025 high, and Jefferies projects 19% EPS CAGR plus 215 bps of EBITDA margin expansion by FY29. Valuation is the main risk. At 50x forward EPS against a 41x target multiple, with NSDL's listing eroding the scarcity premium and price cuts in transaction and KRA charges, Jefferies sees about 7% downside to ₹1,315 and consensus implies about 4% downside. Operating trends are improving, but rerating looks capped, so further gains will likely depend on IPO activity beating expectations.
Quarterly Results
| Particulars | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | Jun 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 150 | 207 | 214 | 241 | 257 | 322 | 278 | 224 | 259 | 319 | 304 | 263 | 293 |
| Expenses | 70 | 79 | 84 | 93 | 103 | 122 | 117 | 115 | 129 | 143 | 145 | 147 | 155 |
| Operating Profit | 80 | 128 | 130 | 148 | 154 | 200 | 161 | 109 | 130 | 176 | 160 | 116 | 138 |
| OPM % | 53% | 62% | 61% | 61% | 60% | 62% | 58% | 49% | 50% | 55% | 52% | 44% | 47% |
| Other Income | 24 | 23 | 21 | 29 | 30 | 37 | 21 | 32 | 36 | 22 | 29 | 6 | 48 |
| Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 6 | 6 | 7 | 8 | 10 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 |
| PBT | 98 | 145 | 145 | 168 | 175 | 225 | 168 | 127 | 151 | 183 | 172 | 103 | 167 |
| Tax % | 25% | 25% | 26% | 23% | 23% | 28% | 23% | 21% | 32% | 23% | 23% | 23% | 29% |
| Net Profit | 74 | 109 | 107 | 129 | 134 | 162 | 130 | 100 | 102 | 140 | 133 | 80 | 118 |
| EPS in Rs | 3.52 | 5.21 | 5.14 | 6.18 | 6.42 | 7.75 | 6.22 | 4.8 | 4.9 | 6.71 | 6.38 | 3.84 | 5.62 |
Profit & Loss
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | TTM |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 105 | 123 | 146 | 188 | 196 | 225 | 344 | 551 | 555 | 812 | 1,082 | 1,145 | 1,179 |
| Expenses | 60 | 59 | 67 | 77 | 87 | 136 | 132 | 186 | 236 | 324 | 457 | 563 | 589 |
| Operating Profit | 45 | 64 | 79 | 110 | 109 | 89 | 212 | 365 | 319 | 488 | 625 | 582 | 590 |
| OPM % | 43% | 52% | 54% | 59% | 56% | 40% | 62% | 66% | 57% | 60% | 58% | 51% | 50% |
| Other Income | 23 | 72 | 41 | 38 | 49 | 59 | 57 | 55 | 66 | 95 | 119 | 93 | 105 |
| Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 6 | 4 | 4 | 7 | 10 | 12 | 9 | 11 | 19 | 27 | 49 | 66 | 70 |
| PBT | 63 | 131 | 117 | 141 | 148 | 136 | 260 | 409 | 365 | 556 | 695 | 609 | 624 |
| Tax % | 31% | 31% | 26% | 27% | 23% | 22% | 22% | 24% | 24% | 25% | 24% | 25% | — |
| Net Profit | 43 | 91 | 87 | 104 | 115 | 107 | 201 | 312 | 276 | 420 | 526 | 455 | 470 |
| EPS in Rs | 2.09 | 4.35 | 4.1 | 4.94 | 5.43 | 5.08 | 9.59 | 14.89 | 13.2 | 20.05 | 25.2 | 21.82 | 22.55 |
| Div. Payout % | 53% | 29% | 37% | 35% | 37% | 44% | 47% | 50% | 61% | 55% | 50% | 58% | — |
Balance Sheet
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 104 | 104 | 104 | 104 | 104 | 104 | 104 | 104 | 104 | 104 | 209 | 209 |
| Reserves | 265 | 375 | 429 | 494 | 564 | 619 | 773 | 988 | 1,109 | 1,359 | 1,551 | 1,751 |
| Borrowings | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2 | 1 | 3 | 2 |
| Other Liabilities | 122 | 74 | 73 | 92 | 116 | 138 | 206 | 232 | 241 | 317 | 399 | 457 |
| Total Liabilities | 491 | 553 | 606 | 690 | 784 | 862 | 1,084 | 1,326 | 1,457 | 1,781 | 2,162 | 2,419 |
| Fixed Assets | 7 | 4 | 5 | 76 | 75 | 74 | 73 | 106 | 125 | 342 | 446 | 500 |
| CWIP | 0 | 0 | 0 | 0 | 0 | 0 | 23 | 4 | 174 | 4 | 7 | 7 |
| Investments | 389 | 457 | 503 | 521 | 593 | 665 | 709 | 925 | 937 | 1,149 | 1,351 | 1,487 |
| Other Assets | 95 | 92 | 98 | 93 | 115 | 123 | 278 | 290 | 221 | 287 | 357 | 424 |
| Total Assets | 491 | 553 | 606 | 690 | 784 | 862 | 1,084 | 1,326 | 1,457 | 1,781 | 2,162 | 2,419 |
Cash Flow
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | 43 | 28 | 43 | 79 | 86 | 82 | 193 | 283 | 249 | 386 | 543 | 467 |
| Investing | -19 | 0 | 18 | -67 | -67 | -33 | -107 | -146 | -126 | -249 | -299 | -185 |
| Financing | -23 | -28 | -31 | -38 | -20 | -51 | -47 | -94 | -158 | -169 | -231 | -262 |
| Net Cash Flow | 0 | 1 | 29 | -26 | -1 | -1 | 38 | 44 | -35 | -32 | 14 | 19 |
| Free Cash Flow | 40 | 27 | 37 | 3 | 74 | 73 | 175 | 258 | 44 | 313 | 388 | 346 |
| CFO/OP | 140 | 102 | 94 | 107 | 110 | 119 | 118 | 105 | 107 | 102 | 110 | 107 |
Ratios
| Particulars | Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 24 | 39 | 33 | 37 | 36 | 42 | 40 | 30 | 25 | 30 | 18 | 21 |
| Cash Conversion Cycle | 24 | 39 | 33 | 37 | 36 | 42 | 40 | 30 | 25 | 30 | 18 | 21 |
| Working Capital Days | -253 | -100 | -79 | -92 | -79 | -85 | -110 | -75 | -45 | -22 | -57 | -32 |
| ROCE % | 14% | 22% | 22% | 24% | 22% | 18% | 31% | 40% | 30% | 40% | 42% | 32% |
Insights
BetaAI-extracted from concalls & annual reports · figures as reported, with sources
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56 extracted metrics + investor summaries across FY15–FY27.
Documents
Frequently Asked Questions about CDSL
What does Central Depository Services (India) Ltd do?
Where is Central Depository Services (India) Ltd (CDSL) listed?
Which sector does Central Depository Services (India) Ltd belong to?
What is the market capitalisation of Central Depository Services (India) Ltd?
What is the PE ratio of Central Depository Services (India) Ltd?
What is the 52-week high and low of Central Depository Services (India) Ltd?
Does Central Depository Services (India) Ltd pay dividends?
What is the Return on Equity (ROE) of Central Depository Services (India) Ltd?
Company Information
Central Depository Services Limited is a Market Infrastructure Institution (MII), part of the capital market structure, providing services to all market participants - exchanges, clearing corporations, depository participants (DPs), issuers and investors. It is a facilitator for holding of securities in the dematerialised form and an enabler for securities transactions. [1]
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