CDSL shares dive 9% post Q3 FY25 results. Details here

Shares of Central Depository Services (India) Ltd or CDSL fell sharply in Monday's trade, extending their fall for the second straight session. The stock tumbled 9.45 per cent to hit a low of Rs 1,358.35.

Today's drop in the share price came after the depository's total income slipped 26.27 per cent, year-on-year (YoY), to Rs 298 crore in the December 2024 quarter (Q3 FY25) from Rs 236 in the year-ago period. However, CDSL's net profit during the quarter under review rose 21.49 per cent (YoY) to Rs 130 crore against Rs 107 crore in the corresponding period last year.

With that being said, total income and profit declined by 16.99 per cent and 19.75 per cent on a sequential basis (quarter-on-quarter), respectively.

CDSL said it became the first depository to register over 14.65 crore demat accounts as of December 31, 2024. During Q3 FY25, 92 lakh new demat accounts were opened.

Around 57.19 lakh shares were last seen changing hands on NSE at a traded value of Rs 790.26 crore. The company's market capitalisation (m-cap) came at Rs 28,651.81 crore.

"These plays on the stock market may see a bad time going ahead as our view on the market is not that sanguine. For CDSL, there's a case of overvaluation and the stock can come off quite a bit," Vinit Bolinjkar, Head of Research at Ventura Securities, told Business Today.

"CDSL is a stock which should be in your portfolio of at least 10 years. It is a counter which investors can accumulate on every dip. If it closes below Rs 1,370 level, we may see a further correction towards Rs 1,100. This could be an opportunity for a long-term investment," said market expert Kush Ghodasara.

The counter traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-day and 150-day simple moving averages (SMAs) but higher than the 200-day SMA.

Central Depository Services (India) is a depository registered with market regulator Sebi. CDSL was set up with the objective of providing convenient dependable and secure depository at affordable cost to all market participants.

It plays a crucial role as the Indian market infrastructure institution (MII), facilitating electronic holding and transaction of securities and facilitates settlement of trades. The firm provides services to a broad spectrum of the capital market entities, including depository participants, issuers, investors, RTAs, clearing corporations and exchanges.