NSEI:CDSL

Stock Analysis Report

Central Depository Services (India)

Executive Summary

Central Depository Services (India) Limited provides depository services in India.


Snowflake Analysis

Second-rate dividend payer with questionable track record.

Share Price & News

How has Central Depository Services (India)'s share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CDSL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.1%

CDSL

-0.7%

IN Capital Markets

-0.8%

IN Market


1 Year Return

31.3%

CDSL

8.9%

IN Capital Markets

11.1%

IN Market

Return vs Industry: CDSL exceeded the Indian Capital Markets industry which returned 7.9% over the past year.

Return vs Market: CDSL exceeded the Indian Market which returned 11.1% over the past year.


Shareholder returns

CDSLIndustryMarket
7 Day-3.1%-0.7%-0.8%
30 Day0.9%-2.8%-2.3%
90 Day22.6%11.5%2.1%
1 Year34.1%31.3%10.7%8.9%13.1%11.1%
3 Yearn/a-4.5%-8.2%22.9%16.2%
5 Yearn/a16.7%9.1%34.9%22.6%

Price Volatility Vs. Market

How volatile is Central Depository Services (India)'s share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Central Depository Services (India) undervalued compared to its fair value and its price relative to the market?

25.9x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CDSL (₹275.4) is trading above our estimate of fair value (₹119.14)

Significantly Below Fair Value: CDSL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CDSL is poor value based on its PE Ratio (25.9x) compared to the Capital Markets industry average (11.2x).

PE vs Market: CDSL is poor value based on its PE Ratio (25.9x) compared to the Indian market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: CDSL is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: CDSL is overvalued based on its PB Ratio (4.3x) compared to the IN Capital Markets industry average (0.5x).


Next Steps

Future Growth

How is Central Depository Services (India) forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CDSL's forecast earnings growth (10.3% per year) is above the savings rate (6.5%).

Earnings vs Market: CDSL's earnings (10.3% per year) are forecast to grow slower than the Indian market (20.5% per year).

High Growth Earnings: CDSL's earnings are forecast to grow, but not significantly.

Revenue vs Market: CDSL's revenue (6.6% per year) is forecast to grow slower than the Indian market (9% per year).

High Growth Revenue: CDSL's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CDSL's Return on Equity is forecast to be low in 3 years time (16.8%).


Next Steps

Past Performance

How has Central Depository Services (India) performed over the past 5 years?

13.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CDSL has a high level of non-cash earnings.

Growing Profit Margin: CDSL's current net profit margins (41%) are lower than last year (44.7%).


Past Earnings Growth Analysis

Earnings Trend: CDSL's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: CDSL's earnings growth over the past year (5.1%) is below its 5-year average (13.5% per year).

Earnings vs Industry: CDSL earnings growth over the past year (5.1%) exceeded the Capital Markets industry -3.2%.


Return on Equity

High ROE: CDSL's Return on Equity (15.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Central Depository Services (India)'s financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CDSL has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CDSL's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: CDSL's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CDSL has a sufficient allowance for bad loans.

Low Risk Liabilities: CDSL reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CDSL has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CDSL has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CDSL has an appropriate level of bad loans.


Next Steps

Dividend

What is Central Depository Services (India)'s current dividend yield, its reliability and sustainability?

1.45%

Current Dividend Yield


Dividend Yield vs Market

company1.5%marketbottom25%0.6%markettop25%2.5%industryaverage1.8%forecastin3Years1.7%

Current dividend yield vs market & industry

Notable Dividend: CDSL's dividend (1.45%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: CDSL's dividend (1.45%) is low compared to the top 25% of dividend payers in the Indian market (2.52%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CDSL has been paying a dividend for less than 10 years.

Growing Dividend: CDSL's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (37.6%), CDSL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CDSL's dividends in 3 years are forecast to be well covered by earnings (39.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Nehal Vora (46yo)

0.4yrs

Tenure

₹275,000

Compensation

Mr. Nehal Naleen Vora serves as Chief Executive Officer and Managing Director at Central Depository Services (India) Limited since September 2019. Mr. Vora had been the Chief Regulatory Officer at BSE Limi ...


Leadership Team

NamePositionTenureCompensationOwnership
Nehal Vora
CEO & MD and Director0.4yrs₹275.00kno data
Nayana Ovalekar
EVP & COO2.4yrsno data0.0021% 611.9k
Farokh Patel
Vice President of Audit3.8yrsno data0.0024% 690.2k
Sunil Alvares
Executive Vice President2.4yrsno datano data
Krishnan Ramkumar
Executive VP & Chief Risk Officer2.4yrsno data0.0036% 1.1m
Girish Amesara
Senior VP0yrsno datano data
Amit Mahajan
Executive VP0yrsno datano data
Amita Paunikar
VP of Legal & Company Secretary0.3yrsno datano data

2.4yrs

Average Tenure

Experienced Management: CDSL's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nehal Vora
CEO & MD and Director0.4yrs₹275.00kno data
Nayan Mehta
Shareholder Director3.3yrs₹1.38mno data
Balakrishna Chaubal
Chairperson0.08yrs₹260.00kno data
Umesh Bellur
Public Interest Director0.3yrsno datano data
Sidhartha Pradhan
Public Interest Director0.3yrsno datano data
Masil Jeya P.
Shareholder Director0.3yrsno datano data
Bimal Patel
Director1.1yrsno datano data
Preeti Saran
Woman Director0.3yrsno datano data

0.3yrs

Average Tenure

52.5yo

Average Age

Experienced Board: CDSL's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Central Depository Services (India) Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Central Depository Services (India) Limited
  • Ticker: CDSL
  • Exchange: NSEI
  • Founded: 1997
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: ₹28.999b
  • Shares outstanding: 104.50m
  • Website: https://www.cdslindia.com

Number of Employees


Location

  • Central Depository Services (India) Limited
  • Marathon Futurex
  • 25th floor, A-Wing
  • Mumbai
  • Maharashtra
  • 400013
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CDSLNSEI (National Stock Exchange of India)YesEquity SharesININRJun 2017

Biography

Central Depository Services (India) Limited provides depository services in India. The company offers various services, such as account opening, dematerialization, processing delivery and receipt instructions, account statement, re-materialization, pledging, nomination, transmission of securities, change in address, bank account details, and SMS services for depository participants. It also provides facilities to issuers to credit securities to a shareholder's or applicants demat accounts; KYC services in respect of investors in capital markets to capital market intermediaries; facilities holding of insurance policies in electronic form to the holders of these policies; and facilitate holding and transacting in electronic negotiable warehouse receipts. In addition, it offers other online services, such as e-voting, e-locker, national academy depository, electronic access to security information, electronic access to security information and execution of secured transaction, and mobile application. It serves investors through depository participants, issuer companies, registrar and transfer agents, beneficial owners, and clearing members. The company was incorporated in 1997 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 13:16
End of Day Share Price2020/02/17 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.