Shares of this debt-free monopoly stock jumped 5 percent after the company posted results for the quarter ended September 2023. The company’s stock has multibagger returns of 200 percent in the past three years.
With a market capitalization of Rs 13,800 crores, the stocks of Central Depository Services (India) Limited started their trading session at Rs 1,416 and currently trades at Rs 1,388.10, gaining approximately 5 percent as compared to the previous close of Rs 1,327.10 apiece.
Such bullish sentiments around the stock prices were observed after the company, through a regulatory filing with the National Stock Exchange (NSE), announced its financial results for Q2FY24, i.e., for the quarter ended September 2023.
On a sequential basis, the company witnessed an increase in the primary business parameters such as operating revenues and net profits.
The operating revenues grew from Rs 149 crores during Q1FY23-24 to Rs 207 crores during Q2FY23-24, and, the net profits, keeping the timeframe the same, moved up from Rs 74 crores to Rs 109 crores exhibiting an increase of 47 percent.
In addition to the above, the company registered growth in the metrics mentioned above on a YoY basis as well with the operating revenues increasing from Rs 150 crores during Q2FY22-23 to Rs 207 crores during Q2FY23-24, and, the net profits shifting from Rs 80 crores to Rs 109 crores keeping the timeframe the same.
Due to increased cost pressure, the company’s profitability ratios such as the return on equity (RoE) and return on capital employed (RoCE) took a hit with the former reducing from 31.65 percent during FY21-22 to 23.93 percent during FY22-23, and, the latter moving down from 41.47 percent to 31.67 percent.
According to the shareholding pattern for the quarter ended September 2023, the company’s Promoters hold a 15 percent stake, and the Foreign Institutional Investors (FIIs) hold a 8.08 percent stake in the company.
Central Depository Services (India) Limited is a securities depository based in India that offers dematerialization for a wide range of securities including equity shares, preference shares, debt instruments, mutual fund units, and government securities.
Written by Amit Madnani
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