Central Depository Services Ltd(CDSL) is India’s leading and only listed depository, to provide convenient, dependable, and secure depository services.
CDSL offers dematerialization services that enable investors to hold securities in electronic form instead of physical forms apart from this it provides Electronic Access to Securities Information, an E-Locker Facility, and Pledge and Hypothecation Services.
In November itself, CDSL’s shares were up 24 percent. This is the best monthly performance that the stock has seen since July 2021, during which it gained 36 percent.
Central Depository Services Ltd is a Mid-cap stock with a market capitalization of Rs 20,330 crore. On Friday, Stock closed at Rs 1,946 per share, up 2.49 percent from the previous day’s closing price.
Recently, on November 22, 2023, Central Depository Services Limited passed the ten crore (100 million) demat account registration mark.
The Central Depository Services Limited (CDSL)was sponsored by the BSE and India’s main banks. This collaboration has allowed CDSL to improve its position and establish itself as a key depository in the Indian stock market.
According to the latest statistics, 599 Depository Participants (DPs) are registered in CDSL, whilst 278 DPs are registered in NSDL.
CDSL is more well-known than NSDL because of its reduced charges, which prompted new brokers to register with CSDL. Furthermore, CDSL has a large network of participants based on its value-added services and low-cost IT service model.
Here is a list of prominent stock brokers that have CDSL accounts, including Zerodha, Groww, AngelOne, IIFL Securities, Upstox, and many more.
CDSL’s revenues have increased by 40 percent year on year from Rs 148 crore in Q2FY23 to Rs 207 crore in Q2FY24, while net profit has risen by 33 percent in the same period, from Rs 82 crore to Rs 109 crore.
Central Depository Services (India) Ltd shares have delivered a return of 77 percent in the last six months and 52 percent in a year.
The brokerage Nuvama Wealth sees a potential upside in the stock and has set a buy target price of Rs 2,020 a share.
In the most recent fiscal year, the company received 81 percent of its revenue from the Depository activity segment, while 18 percent from storage, and the rest of the revenue from the repository activity segment business.
Here’s a list of some CDSL Subsidiaries:
CDSL Ventures Ltd (CVL), a wholly-owned subsidiary of CDSL, has been the first and biggest KYC registration agency since 2008, with over 4.5 crore records. It conceptualized, built, and implemented the KRA system in collaboration with the mutual fund organization AMFI for all mutual funds. CVL now has over 4.6 crore completely digital KYC records.
CDSL Insurance Repository Ltd (CDSL IR) is a registered insurance repository (IR). An IR stores data about insurance policies in electronic form on behalf of insurers.
CDSL Commodity Repository Ltd (CCRL) enables enterprises such as farmers, farmers’ producer organizations (FPOs), and manufacturers to get electronic warehouse receipts (negotiable or non-negotiable) in a demat account against commodities stored in registered warehouses.
Central Depository Services Limited is a Market Infrastructure Institution, part of the capital market structure, that provides services to all market participants such as exchanges, clearing corporations, depository participants (DPs), issuers, and investors.
Written by Omkar Chitnis
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