Before investing in CDSL. Read the complete Analysis of CDSL.

             In this article the complete analysis of CDSL or Central Depository Services Limited is described. Here History, swot analysis, financial highlights, shareholding pattern, share return etc are covered. 

          CDSL or Central Depository Services Limited, located in mumbai is the first central depository that is listed in stock market. It was started in 1999 to fulfill a goal that was to provide convenient, dependable and secured depository services. In this way we keep our money in bank, in same way the shares we buy are stored in demat account. The service of opening demat account is provided by CDSL. Now in india the service of opening demat account is provided by two companies that are NSDL and CDSL. 

               CDSL was listed in national stock exchange through ipo on 30th june in 2017. It became the first to be listed in the Asia-Pacific region and the second depository in the world. Currently market cap of CDSL is 13,968 crore rupees( small cap company). Let's discuss the SWOT analysis.

STRENGTHS:

                    Year on year net profit of cdsl is increasing. In last two years net cash flow of cdsl is improving. No promoters pledges their shares. It is a positive signal for company. CDSL is a debt free company. In last two years book value per shareis increasing. 

Book value per share= (Assets- Liabilities)/number of shares

                 Foreign institutional investor or FII increased their stake in cdsl. In march 2020 quarter stake of fii was 8.95% . In june 2021 quarter they increased their stake and it became 15.49%. 

WEAKNESSES:

                       ROE of cdsl is decreasing in last two years. Roe tells how much company earns on each share price. It is one of the most useful ratio for investors. It is useful for them who wants to do fundamental analysis. On basis of quarter on quarter net profit of cdsl is reducing. In last two years ROA or Return on Assets is decreasing. It means company fails to earn more through its assets. 

OPPOTUNITIES:

                        Recently cdsl is the first depository which opened 4 lakh+ new active demat accounts. It is a good sign for company's future. 

THREATS:

               PE ratio or Price to Earning ratio of cdsl is currently too high. High pe stocks are considered overvalued stocks. 

FINANCIALS:

                   In 2021 revenue of cdsl is 400 crore rupees. In 2018 revenue of cdsl was 225 crore rupees. In last three years company's revenue is increased by 77%. 

                 

In FY 2021 net income of cdsl is 200 crore rupees. In FY 2018 net income was 103 crore rupees. It means in last three years net income become double. 

EPS:

         In FY 2021 EPS is 19 rupees per share. It was 9 rupees per share in FY 2018. It means eps become double in last three years.  In last three revenue of cdsl is increased by 15.56% where industry revenue is increased by 3.07%. It means company performs better than sector. 

DEBT TO EQUITY RATIO:

           Company's debt to equity ratio is zero. It tells company is debt free. 

RESERVES:

            In FY 2017 reverves of cdsl was 375 crore rupees. Company increases its reserves and now company's reserves is 773 crore rupees. Year on year company increases its reserves. 

MANAGEMENT:

            Shri Balkrishna V Chaubal is the chairperson of cdsl. Before joining cdsl was the Deputy Managing Director at state bank of india. He is a Certified Associated of the Indian Institute of Bankers. Besides this Bimalkumar N Patel, Preeti Saren, Umesh Bellur etc are present in cdsl's board. 

SHAREHOLDING PATTERN: 

           Retailers hold most of the shares of cdsl that is about 40%. Promoters have 20%, mutual funds have 8%, FII have 15% and DII have 17% stake in company. 

RETURNS: 

         According to the data of august 2021 cdsl gave 254% return in one year. Its share touched highest 1579 rupees and lowest 351 rupees. 

     It is the complete analysis of cdsl. Here you see growth of cdsl's revenue, net income, eps and reserves. After this analysis you can easily understand the company's fundamentals and you can make your investment decision on this company .

          If you have any query related to CDSL company analysis please comment below so that the topic can be covered.

Best wishes to invest.

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