NSEI:CDSL

Stock Analysis Report

Central Depository Services (India)

Executive Summary

Central Depository Services (India) Limited operates as a securities depository in India.

Snowflake

Fundamentals

Solid track record unattractive dividend payer.

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


Market Performance


7 Day Return

-1.0%

CDSL

-2.0%

IN Capital Markets

1.6%

IN Market


1 Year Return

-15.2%

CDSL

-31.4%

IN Capital Markets

0.8%

IN Market

Return vs Industry: CDSL exceeded the Indian Capital Markets industry which returned -31.4% over the past year.

Return vs Market: CDSL underperformed the Indian Market which returned 0.8% over the past year.


Shareholder returns

CDSLIndustryMarket
7 Day-1.0%-2.0%1.6%
30 Day-0.8%-5.6%1.5%
90 Day-0.6%-21.4%-3.3%
1 Year-13.4%-15.2%-30.3%-31.4%2.7%0.8%
3 Yearn/a-19.7%-22.6%22.0%16.0%
5 Yearn/a10.2%3.5%42.3%29.3%

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?

18.05x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: CDSL (₹205.8) is trading above our estimate of fair value (₹109.67)

Significantly Undervalued: 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 (18.1x) compared to the Capital Markets industry average (13.7x).

PE vs Market: CDSL is poor value based on its PE Ratio (18.1x) compared to the Indian market (13.1x).


Price to Earnings Growth Ratio

Low PEG Ratio: CDSL is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: CDSL is overvalued based on its PB Ratio (3.2x) 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 2 analysts?

5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CDSL's forecast earnings growth (5.7% per year) is below the savings rate (7.6%).

Earnings vs Market: CDSL's earnings (5.7% per year) are forecast to grow slower than the Indian market (18.3% per year).

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

Revenue vs Market: CDSL's revenue is expected to decline over the next 3 years (-2.4% per year).

High Growth Revenue: CDSL's revenue is forecast to decline over the next 3 years (-2.4%).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if CDSL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

15.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CDSL's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: CDSL's earnings growth over the past year (19.4%) exceeds its 5-year average (15.1% per year).

Earnings vs Industry: CDSL earnings growth over the past year (19.4%) exceeded the Capital Markets industry -17.8%.


Return on Equity

High ROE: CDSL's Return on Equity (17%) is considered low.


Return on Assets

ROA vs Industry: CDSL has a higher Return on Assets than the Capital Markets industry average last year.


Return on Capital Employed

ROCE Improving: CDSL has significantly improved its Return on Capital Employed over the past 3 years.


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?

1.94%

Current Dividend Yield


Dividend Yield vs Market

company1.9%marketbottom25%0.6%markettop25%2.5%industryaverage2.3%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CDSL's dividend (1.94%) is higher than the bottom 25% of dividend payers in the Indian market (0.6%).

High Dividend: CDSL's dividend (1.94%) is low compared to the top 25% of dividend payers in the Indian market (2.49%).

Stable Dividend: Too early to tell whether CDSL's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if CDSL's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.1%), CDSL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Central Depository Services (India)'s salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Nehal Vora (46yo)

0.08yrs

Tenure

₹275,000

Compensation

Mr. Nehal Naleen Vora has been the Chief Regulatory Officer at BSE Limited (Also known as Bombay Stock Exchange Limited) since July 20, 2009 and served as its Compliance Officer. He serves as Chief Executi ...


Management Age and Tenure

2.1yrs

Average Tenure

Experienced Management: CDSL's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

1.9yrs

Average Tenure

Experienced Board: CDSL's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

Sell₹38,644,21429 Dec 18
Bank of India, Asset Management Arm
EntityCompany
Shares175,000
Max Price₹220.82
Sell₹40,212,62828 Dec 18
Bank of India, Asset Management Arm
EntityCompany
Shares181,315
Max Price₹221.78
Sell₹17,044,34626 Dec 18
Bank of India, Asset Management Arm
EntityCompany
Shares75,000
Max Price₹227.26
Sell₹23,429,27721 Dec 18
Bank of India, Asset Management Arm
EntityCompany
Shares100,000
Max Price₹234.29
Sell₹200,351,51520 Dec 18
Bank of India, Asset Management Arm
EntityCompany
Shares917,180
Max Price₹218.44
Sell₹100,526,84119 Dec 18
Bank of India, Asset Management Arm
EntityCompany
Shares462,000
Max Price₹217.59
Sell₹29,969,04019 Dec 18
Bank of India, Asset Management Arm
EntityCompany
Shares135,603
Max Price₹221.01
Sell₹15,497,73017 Dec 18
Bank of India, Asset Management Arm
EntityCompany
Shares69,636
Max Price₹222.55
Sell₹79,816,79313 Dec 18
Bank of India, Asset Management Arm
EntityCompany
Shares356,425
Max Price₹230.14
Sell₹46,581,78613 Dec 18
Bank of India, Asset Management Arm
EntityCompany
Shares207,925
Max Price₹224.03
Sell₹32,643,68406 Dec 18
Bank of India, Asset Management Arm
EntityCompany
Shares140,790
Max Price₹235.49
Sell₹105,187,47104 Dec 18
Bank of India, Asset Management Arm
EntityCompany
Shares445,000
Max Price₹236.38
Sell₹278,121,37430 Nov 18
Bank of India, Asset Management Arm
EntityCompany
Shares1,180,326
Max Price₹236.43

Ownership Breakdown


Management Team

  • Bharat Sheth

    Executive VP & CFO

    • Tenure: 0yrs
    • Compensation: ₹8.35m
  • Nayana Ovalekar

    EVP & COO of Operations and Admission Cell

    • Tenure: 2.1yrs
  • Nehal Vora (46yo)

    CEO & MD and Director

    • Tenure: 0.08yrs
    • Compensation: ₹275.00k
  • Sunil Alvares

    Executive Vice President of New Projects

    • Tenure: 2.1yrs
  • Krishnan Ramkumar

    Executive Vice President

    • Tenure: 2.1yrs
  • Joydeep Dutta (59yo)

    Group CTO & Executive Director

    • Tenure: 0yrs
  • Farokh Patel

    Vice President of Audit

    • Tenure: 0yrs
  • Gaurang Shah

    Vice President of Finance & Accounts

    • Tenure: 0yrs

Board Members

  • Nehal Vora (46yo)

    CEO & MD and Director

    • Tenure: 0.08yrs
    • Compensation: ₹275.00k
  • Balakrishna Chaubal

    Independent Director

    • Tenure: 0.3yrs
    • Compensation: ₹260.00k
  • Bontha Rao (65yo)

    Public Interest Director

    • Tenure: 3yrs
    • Compensation: ₹1.93m
  • Masil Jeya P

    Shareholder Director

    • Tenure: 0yrs
  • Bimal Patel

    Director

    • Tenure: 0.8yrs

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: ₹21.584b
  • 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 operates as a securities depository in India. It offers various services, such as account opening, dematerialization, processing delivery and receipt instruction ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/15 12:54
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
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.