Today, we are going to estimate the CDSL Share Price Target 2024 to 2050 Long Term Prediction. CDSL is listed on the NSE under the symbol “CDSL”. Let’s analyze the future of Central Depository Services (India) Ltd shares as well, including whether it’s a good time to buy or sell them today.
Additionally, we will also take into analysis CDSL Share Recommendations from various brokerage firms, including Target’s High Price, Target’s Low Price and Recommendation at the end of the article.
Profile of CDSL
| Name | Central Depository Services (India) Limited |
| Industry | Depository Services |
| Founded | February 1999 |
| Services | – Dematerialisation of securities |
| – Transfer and settlement of securities | |
| Products | The official website of CDSL lists various services and products such as: |
| – Electronic Instruction Platforms of Stock Brokers / Depository Participants (eDIS) | |
| – e-Voting platform | |
| – Electronic access to securities information (Easi and Easiest) | |
| – Facilities related to Alternative Investment Fund (AIF) | |
| Country | India |
| Website | www.cdslindia.com |
| Profile | Central Depository Services |
Keep an eye on CDSL’s share price today with real-time updates, and examine its performance on the stock market through comprehensive charts that display the fluctuations in CDSL’s stock price.
Brokerage Firms
An effective method for evaluating the CDSL share price Target is by examining research reports and analyses conducted by reputable financial institutions and brokerage firms. The latest research reports are available on CDSL.
| DATE | AUTHOR | TARGET | TYPE |
|---|---|---|---|
| 08 FEB 2024 | HDFC Securities | 2170.00 | Buy |
| 02 NOV 2023 | HDFC Securities | 1700.00 | Buy |
| 31 OCT 2023 | ICICI Securities Limited | 1351.00 | Hold |
| 11 AUG 2023 | HDFC Securities | 1470.00 | Buy |
The financial services firm HDFC Securities published the latest research report on CDSL’s Share Price Target, assigning a ‘BUY’ rating with a share price target of Rs. 2,170 from its current market price of Rs. 1,958 as of 7 Feb 2024.
CDSL, the leading securities depository in India, has reported another impressive quarter of growth, showcasing a robust performance amidst evolving market dynamics. The company’s financial results for the quarter ending in December 2023 underscored a remarkable 52% year-on-year increase in revenue. This growth trajectory was primarily fueled by a surge in market-linked revenue streams and a consistent annuity income.
The surge in revenue was attributed to various factors including a substantial increase in transaction revenue, initial public offerings (IPOs), corporate actions, and Know Your Customer (KYC) activities. However, it’s worth noting that there was a seasonal dip in e-voting revenue during this period.
One of the key highlights of CDSL’s performance was its exceptional account addition rate, setting new records by adding approximately 8.5 million dematerialized (Demat) accounts during the quarter, marking an impressive 88% year-on-year growth. The rate of account addition in January 2024 was particularly noteworthy, surpassing the peak rate observed in October 2021 by 28%.
Maintaining its dominant position in the market, CDSL commands a significant 75.6% market share with an incremental share of 90%. The company’s growth prospects remain promising, supported by factors such as a robust increase in Beneficial Owner (BO) accounts, rising transaction revenue, and stable annuity income. Additionally, the potential growth catalysts include opportunities in the insurance sector, contingent upon regulatory support, and the mandatory Demat requirement for non-small private limited companies, which is expected to drive issuer growth.
However, CDSL is facing upward pressure on its operational costs, primarily driven by investments in technology, escalating employee expenses, and compliance with regulatory requirements. Consequently, the company witnessed a notable 30% increase in costs during the first nine months of the financial year 2023-24, resulting in an expected EBITDA margin range of 60-63%.
In light of the favorable growth prospects and market share gains, analysts have revised their growth and earnings per share (EPS) estimates upward. Maintaining a bullish stance on the stock, analysts have reiterated a BUY rating for CDSL with a revised target price of INR 2,170, based on a 40x estimated EPS for the financial year 2025-26.
Delving into the specifics of the third quarter of the financial year 2023-24, CDSL reported a revenue growth of 3.5% quarter-on-quarter and an impressive 51.9% year-on-year increase, amounting to INR 2.15 billion. This growth was predominantly driven by a surge in transaction revenue, IPO and corporate action fees, and KYC charges. The annuity component of revenue, represented by annual issuer charges, also witnessed a substantial increase of 39.1% year-on-year.
Despite facing margin contraction, primarily due to escalating costs, CDSL continues to witness robust growth in its Demat account base, with approximately 108.8 million accounts in total. The company added approximately 4.1 million incremental Demat accounts in January 2024, translating to an impressive rate of approximately 153,000 accounts per day. Moreover, the share delivery volume reached a multi-year high, further augmenting transaction revenue.
Looking ahead, analysts foresee a positive outlook for CDSL, projecting revenue growth rates of 42%, 19%, and 16%, along with an expected EBITDA margin of 60.4%, 61.7%, and 62.8% for the financial years 2023-24, 2024-25, and 2025-26, respectively. The anticipated revenue compound annual growth rate (CAGR) over the period from financial year 2023 to 2026 stands at 25%, underpinned by robust growth expectations across various revenue streams.
Long-Term Prediction
To analyze the CDSL Share Price Target prediction, I will employ technical analysis and machine learning models, specifically focusing on chart patterns, market trends, and historical performance data.
| Year | Minimum Target (₹) | Maximum Target (₹) |
|---|---|---|
| 2024 | ₹2,300 | ₹2,600 |
| 2025 | ₹2,500 | ₹2,900 |
| 2026 | ₹2,700 | ₹3,200 |
| 2027 | ₹2,900 | ₹3,500 |
| 2028 | ₹3,100 | ₹3,800 |
| 2029 | ₹3,300 | ₹4,100 |
| 2030 | ₹3,500 | ₹4,400 |
| 2035 | ₹4,500 | ₹5,500 |
| 2040 | ₹5,500 | ₹7,000 |
| 2045 | ₹7,000 | ₹9,500 |
| 2050 | ₹9,000 | ₹12,000 |
Analyst Recommendations
CDSL Buy or Sell
Daily Low / High
About CDSL Company
Central Depository Services Limited (CDSL) stands as a prominent player in India’s dynamic capital market. Established in 1999, CDSL has dedicated itself to empowering investors and stakeholders by innovatively blending technology and the human touch. This unique approach has positioned CDSL as a leader in providing secure and efficient depository services.
CDSL’s journey over 25 years has been marked by significant milestones, including the introduction of various digital platforms and services that revolutionize how investments are managed in India. Notable among these are the electronic access to securities information (easi), electronic voting (e-Voting), and mobile applications like Myeasi, enhancing the convenience and security for investors.
The company’s commitment to innovation is also evident in its financial growth, marked by an impressive increase in the number of demat accounts and expanding market share. CDSL’s focus on digital transformation aligns with India’s evolving economic landscape, driving a shift towards more technologically driven, transparent, and secure investment processes.
Strengths–
Robust Revenue Growth: CDSL has demonstrated consistent revenue growth over the past years, with total revenue reaching ₹6,962,394 thousand in the trailing twelve months (TTM) period ending on March 30, 2023.
Healthy Profit Margins: The company has maintained healthy gross profit margins, with a gross profit of ₹5,406,859 thousand in the TTM period, indicating efficient cost management.
Strong Operating Performance: CDSL’s operating income has seen significant growth, standing at ₹3,914,300 thousand in the TTM period, reflecting operational efficiency and effectiveness.
Stable Net Income: The net income available to common stockholders has consistently increased over the years, reaching ₹3,529,530 thousand in the TTM period, showcasing the company’s profitability and financial stability.
Weaknesses–
Increasing Operating Expenses: CDSL has witnessed a rise in operating expenses over time, reaching ₹1,492,559 thousand in the TTM period, which could impact profitability if not managed effectively.
High Tax Provisions: The company’s tax provisions have also increased, indicating a higher tax burden, which could potentially reduce net income available for reinvestment or distribution to shareholders.
Opportunities–
Expansion of Services: CDSL can explore opportunities to diversify its service offerings beyond its core business, such as venturing into allied financial services or exploring new markets.
Technological Advancements: Embracing technological advancements can enhance operational efficiency and customer experience, enabling the company to stay competitive in the rapidly evolving financial landscape.
Threats–
Regulatory Risks: Changes in regulations or compliance requirements in the financial sector could pose a threat to CDSL’s operations and financial performance.
Market Competition: Intense competition from existing players or new entrants in the market could exert pressure on pricing and market share, impacting the company’s profitability.
Peer Comparison of CDSL
| Name | P/E | Mar Cap Rs.Cr. |
|---|---|---|
| BSE | 83.60 | 34003.16 |
| NBCC | 73.60 | 27693.24 |
| CDSL | 59.23 | 20903.14 |
| Multi Comm. Exc. | 441.17 | 19777.85 |
| Cams Services | 46.35 | 14449.41 |
| Indian Energy Ex | 39.11 | 12876.06 |
| RattanIndia Ent | 29.92 | 12493.01 |
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– As of 8 February 2024, the current share price of CDSL is ₹2,000 Check out today’s current share price of CDSL at the top.
– According to Google historical data, the price of CDSL on 30 JUN 2017 was ₹261.60.
– Based on our analysis, the maximum CDSL Share Price Target in 2024 is projected to be ₹2,600.
– Based on our analysis, the maximum CDSL Share Price Target in 2025 is projected to be ₹2,900.
– Based on our analysis, the maximum CDSL Share Price Target in 2027 is projected to be ₹3,500.
– Based on our analysis, the maximum CDSL Share Price Target in 2030 is projected to be ₹4,400.
– Based on our analysis, the maximum CDSL Share Price Target in 2035 is projected to be ₹5,500.
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I would like to remind you that I am not authorized by SEBI to provide any financial advice or recommendations. As you know, Share price prediction is not an exact science, That’s why I am conducting in-depth research and using different AI tools to predict share prices.
Disclaimer– These Share Price Targets for “CDSL Share Price Target” are only provided for informational purposes. It does not constitute a recommendation to buy, sell, or hold CDSL stock. Investors should conduct their research and analysis and consult with financial experts before making any investment decisions— Sharedhan.com
