New Forecasts: Here's What Analysts Think The Future Holds For Central Depository Services (India) Limited (NSE:CDSL)

Central Depository Services (India) Limited (NSE:CDSL) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's forecasts. The analysts have sharply increased their revenue numbers, with a view that Central Depository Services (India) will make substantially more sales than they'd previously expected. Central Depository Services (India) has also found favour with investors, with the stock up a noteworthy 10% to ₹2,000 over the past week. Could this upgrade be enough to drive the stock even higher?

Following the upgrade, the current consensus from Central Depository Services (India)'s eight analysts is for revenues of ₹9.2b in 2025 which - if met - would reflect a notable 18% increase on its sales over the past 12 months. Statutory earnings per share are presumed to soar 28% to ₹43.24. Prior to this update, the analysts had been forecasting revenues of ₹8.2b and earnings per share (EPS) of ₹40.11 in 2025. Sentiment certainly seems to have improved in recent times, with a substantial gain in revenue and a modest lift to earnings per share estimates.

View our latest analysis for Central Depository Services (India)

It will come as no surprise to learn that the analysts have increased their price target for Central Depository Services (India) 19% to ₹1,841 on the back of these upgrades.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Central Depository Services (India)'s revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2025 being well below the historical 24% p.a. growth over the last five years. Compare this to the 280 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 13% per year. So it's pretty clear that, while Central Depository Services (India)'s revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for next year, expecting improving business conditions. There was also an upgrade to revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider market. There was also a nice increase in the price target, with analysts apparently feeling that the intrinsic value of the business is improving. Seeing the dramatic upgrade to next year's forecasts, it might be time to take another look at Central Depository Services (India).

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple Central Depository Services (India) analysts - going out to 2026, and you can see them free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.