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Check Before You Invest : Central Depository Services (India) Ltd

BSE: 0 NSE: CDSL ISIN: INE736A01011
  |   Sector:  IT & ITES   |   Industry:  Depository Services

Snapshot

Q.1 Which industry/sub-sector does Central Depository Services (India) Ltd belong to?
Central Depository Services (India) Ltd belongs to the IT & ITES sector, operating specifically within the Depository Services segment.
Q.2 Is Central Depository Services (India) Ltd a good quality company?
Central Depository Services (India) Ltd is a good quality company, based on a consistently good 10 year financial track record.
Q.3 Is Central Depository Services (India) Ltd undervalued or overvalued?
Central Depository Services (India) Ltd appears Overvalued, as its key valuation ratios are above with their past averages.
Q.4 Is Central Depository Services (India) Ltd a good buy now?
Central Depository Services (India) Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Central Depository Services (India) Ltd?
Central Depository Services (India) Ltd revenue growth is 33.2% for FY-2025 , which is below its 5 year CAGR of 36.9% , indicating slower growth.
Q.2 Gross Profit margin of Central Depository Services (India) Ltd?
Central Depository Services (India) Ltd Gross profit margin which is the profit after deduction of direct costs, is 68.5% for FY-2025 , which is below its 5 year median of 71.9% , indicating decreasing margins.
Q.3 Operating Profit Margin of Central Depository Services (India) Ltd?
Central Depository Services (India) Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 57.73% for FY-2025 , which is below its 5 year median of 60.25% indicating decreasing margins.
Q.4 Net Profit Margin of Central Depository Services (India) Ltd?
Central Depository Services (India) Ltd Net Profit Margin is 48.63% for FY-2025 , is below with its 5 year median of 51.65%, indicating decreasing margins.
Current Level Historic Median
Gross Profit Margin 68.5 71.9
Operating Profit Margin 57.73 60.25
Net Profit Margin 48.63 51.65
Q.5 Return on Asset of Central Depository Services (India) Ltd?
Central Depository Services (India) Ltd Return on Asset is 22.28%, which is above its 5 year historical median of 20.1%, indicating improved asset utilization efficiency.
Q.6 Return on Equity (ROE) of Central Depository Services (India) Ltd?
Central Depository Services (India) Ltd Return on equity is 32.65% for FY-2025 , which is above its historical median of 31.34%, indicating the business is making better use of its shareholders capital.
Q.7 Return on capital employed (ROCE) of Central Depository Services (India) Ltd?
Central Depository Services (India) Ltd Return on capital employed is 43.12% for FY-2025 , which is above its estimated weighted average cost of capital(WACC) 11.25%, indicating value creation.
Q.8 Cash conversion cycle of Central Depository Services (India) Ltd?
Central Depository Services (India) Ltd Cash conversion cycle is -32 days, below its historical median of -29 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.
Current Level Historic Median
Asset Turnover 0.46 0.36
ROE 32.65 31.34
ROCE 43.12 41.47
Cash Conversion Cycle -32 days -29 days
Q.9 Debt to Equity ratio of Central Depository Services (India) Ltd?
Central Depository Services (India) Ltd Debt-to-Equity ratio is 0.00 , which is lower with the industry average of 0.08 , indicating lower debt levels in the industry.
Q.10 Debt to cash flow from operations of Central Depository Services (India) Ltd?
Central Depository Services (India) Ltd Debt to cash flow from operations is 0 , which is at a healthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Central Depository Services (India) Ltd?
Promoters hold 15.00% of the Central Depository Services (India) Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Central Depository Services (India) Ltd vs industry peers?
Central Depository Services (India) Ltd revenue CAGR is 36.89% , compared to the industry median CAGR of 28.14% , indicating faster growth and gaining its market share.
Profit Metrics
Current Level Industry Median
Revenue 1,082.2 763.5
Gross Profit 741.2 372.4
Operating Profit 624 358
Net Profit 526 261.5
Operating Efficiency
Current Level Industry Median
Asset Turnover 0.46 0.55
ROE 32.65 35.23
ROCE 43.12 43.69
Cash Conversion Cycle (days) -32 6

Valuation & price assessment

Q.1 Stock return of Central Depository Services (India) Ltd over the last decade?
Over the last 5 year(s), the stock has delivered a CAGR of 13.53% based on the current price.
Q.2 What return has the stock given over the last decade?
9Y 5Y 3Y 1Y
Share Price - 13.5% 10.9% 10.1%
Q.3 Valuation ratios of Central Depository Services (India) Ltd vs historical?
The current P/E is higher that its historical median.
Q.4 How do the current valuation ratios measure up against the historic numbers and the current industry numbers?
Valuation Ratios Current Historic Median Industry Median
Price to Earnings 60.03 47.66 46.60
Price to Book 15.23 10.79 14.28
Price to Sales 25.84 24.62 15.28
EV to EBITDA 40.84 33.42 32.22

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