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

Q: 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: 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 multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is Central Depository Services (India) Ltd undervalued or overvalued?

Central Depository Services (India) Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 54.97, Historic Median: 53.26. Price to Book, Current: 12.8, Historic Median: 14.33. Price to Sales, Current: 21.9, Historic Median: 27.21. EV to EBITDA, Current: 36.78, Historic Median: 39.56

Q: Is Central Depository Services (India) Ltd a good buy now?

Central Depository Services (India) Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: 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 36.89%, indicating slower growth.

Q: 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 in line with its 5-year median of 71.9%, indicating stable margins.

Q: 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 in line with its 5-year median of 60.25% indicating stable margins.

Q: 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 its 5-year median of 51.65%, indicating decreasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 68.5, Historic Median: 71.9. Operating Profit Margin (%), Current: 57.73, Historic Median: 60.25. Net Profit Margin (%), Current: 48.63, Historic Median: 51.65

Q: 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: 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 in line with its 5-year historical median of 41.47%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

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

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 multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is Central Depository Services (India) Ltd undervalued or overvalued?

Central Depository Services (India) Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	54.97	53.26
Price to Book	12.8	14.33
Price to Sales	21.9	27.21
EV to EBITDA	36.78	39.56

Q.4 Is Central Depository Services (India) Ltd a good buy now?

Central Depository Services (India) Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Revenue growth, Gross, Operating and Net Margins compared to its last 5-year median.
How efficiently has it utilized Capital?
By checking its ROCE, ROA, ROE and its Cash Conversion Cycle.
How is it managing its Debt?
By checking its Debt to Equity and Cash Flow from Operations.

A: What are the trends in revenue and profit margins?

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 36.89%, 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 in line with its 5-year median of 71.9%, indicating stable 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 in line with its 5-year median of 60.25% indicating stable 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 its 5-year median of 51.65%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	68.5	71.9
Operating Profit Margin (%)	57.73	60.25
Net Profit Margin (%)	48.63	51.65

B: Does the business utilize capital efficiently?

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 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 in line with its 5-year historical median of 41.47%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 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 in line with its 5-year historical median of 31.34%, indicating the business is making similar use of its shareholders capital.

Q.8 Cash conversion cycle of Central Depository Services (India) Ltd?

Central Depository Services (India) Ltd Cash conversion cycle is -32 days, below its 5-year historical median of -29 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.46	0.36
ROE (%)	32.65	31.34
ROCE (%)	43.12	41.47
Cash Conversion Cycle	-32 days	-29 days

C: How much debt does the business have and is it at a sustainable level?

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 in line with the industry average of 0.00, indicating similar to 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

D: Promoter shareholding and pledge status of Central Depository Services (India) Ltd?

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)

E: How does Central Depository Services (India) Ltd performance compare with that of its Peers?

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 19.65%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	33.2	19.7
Gross Profit Growth (%)	26.9	30.6
Operating Profit Growth (%)	27.6	25.5
Net Profit Growth (%)	25.2	31

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.46	0.45
ROE (%)	32.65	28.83
ROCE (%)	43.12	36.42
Cash Conversion Cycle (days)	-32	-18

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 6.61% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	6.6%	6.6%	-17.6%

Q.2 Valuation ratios of Central Depository Services (India) Ltd vs historical?

The current P/E ratio of 54.97 is in line with than its historical median of 53.26, indicating that the stock is trading near its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	54.97	53.26	51.41
Price to Book	12.8	14.33	12.97
Price to Sales	21.9	27.21	21.24
EV to EBITDA	36.78	39.56	35.82

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

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

Check more companies

Check trending companies

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