Shares of CDSL, an India-based Depository, jumped around 5 percent on Thursday after the company announced about registration of 10 crore Demat accounts. The company’s stock has recently seen a huge rally and has soared nearly 40 percent in the past month.
With a market capitalization of Rs 18,726.40 crores, the stocks of Central Depository Services (India) Limited opened their trading hour on Thursday at Rs 1,740 and currently trades at Rs 1,792, gaining approximately 5 percent as compared to the previous closing levels of Rs 1,719 apiece.
Such bullish behavior in the company’s stock price was observed after it released a filing with the National Stock Exchange (NSE) announcing that the company has achieved a milestone of registering “10 crore” Demat accounts. The company is Asia’s first and only listed company to report such numbers.
Along with such a Demat account base, the company serves the Beneficial Owners (BOs) with its Depository Participants (DPs) strength of more than 500 and spread across more than 20,000 locations
During the recent financial quarter periods, the company successfully increased its prime business indicators such as operating revenues and net profits. The former took a jump from Rs 149 crores during Q1FY23-24 to Rs 207 crores during Q2FY23-24, and, the latter, keeping the timeframe the same, moved up from Rs 74 crores to Rs 109 crores.
On a contrasting note, the company, due to increased cost pressure, took a hit on the bottom-line numbers thereby affecting its profitability ratios with the return on equity (RoE) dipping from 28.47 percent during FY21-22 to 22.73 percent during FY22-23, and, the return on capital employed (RoCE) shifting down from 35.65 percent to 29.04 percent.
As per the shareholding pattern for the September 2023 quarter, the company’s Promoters hold a 15 percent stake, and the Foreign Institutional Investors (FIIs), recently increasing stake, currently holds a 8.08 percent stake in the company.
Founded in 1999, Central Depository Services (India) Limited (CDSL) is a securities depository based in India that offers Dematerialization services 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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