CDSL shares turn negative after stellar run in 2024, what's next?

Shares of Central Depository Services (India) Ltd (CDSL) have lost 33% in 2025. The correction comes even as the stock nearly doubled investor wealth rising 96% in 2024.  CDSL stock is not listed on BSE. 

The short term correction has made investors jittery about the prospects of the stock.

Brokerage Anand Rathi sees 16% upside in the stock with a target of Rs 1,450. The stock has been in a corrective mode since quite sometime and has fallen from Rs 2000 to Rs 1100, said Anand Rathi adding that on the daily chart, it is witnessing a higher top and higher bottom formation.

"There is breakout too which resembles an inverse head and shoulder pattern. Thus, we advise traders to buy the stock in the range of Rs 1250 . Rs 1240 with a stop loss of Rs 11500 for upside target of Rs 1450," said Anand Rathi. 

The depository stock ended 2.72% higher at Rs 1220 on Friday. It closed at Rs  1187.70 in the previous session on NSE. 

CDSL stock is not listed on BSE. The stock hit a high of Rs 1259.80 in the previous session. 

Market cap of CDSL rose to Rs 25,499 crore. In six months, the stock has fallen 15.11% and gained 42% in a year. The stock has a beta of 1.3, indicating very high volatility in a year. 

In terms of technicals, the relative strength index (RSI) of CDSL stands at 49.2, signaling it's trading neither in the overbought nor in the oversold territory. 

CDSL shares are trading higher than the 5 day 10 day, 20 day, 30 day but lower than the 50 day, 100 day and 200 day moving averages. 

CDSL reported a 21.49% rise in net profit in Q3 at Rs 130 crore against Rs 107 crore in the corresponding period last year. 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. 

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