CDSL Shares Drop 9% After Weak Quarterly Results
Shares of Central Depository Services Ltd. (CDSL) took a hit on Monday, January 27, falling as much as 9% following the company’s disappointing December quarter results released over the weekend.
Financial Performance Shows Decline
CDSL reported an operating income of ₹221 crore for the December quarter, down from ₹248 crore during the same period last year. The company’s EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) also saw a sharp drop, plunging 37% quarter-on-quarter to ₹146 crore, compared to ₹231 crore in the September quarter.
Furthermore, net profit for the quarter fell 38% from ₹171 crore in the September quarter to ₹105 crore.
Key Metrics Take a Hit
One of the most concerning figures is the decline in new accounts opened. During the December quarter, CDSL only managed to open 92 lakh new accounts, a significant drop from the 1.18 crore accounts opened in the previous quarter. This is the lowest number of new accounts opened since the December quarter of FY24. Additionally, demat custody also declined, falling to ₹75 lakh crore at the end of the quarter, down from ₹78 lakh crore in September.
Analyst Sentiment Remains Divided
Out of 10 analysts covering the stock, six analysts have a “hold” rating, while two analysts each have a “buy” and “sell” rating on the stock. This mixed outlook reflects investor uncertainty about CDSL’s near-term growth prospects.
Stock Performance
As of now, CDSL shares are trading at ₹1,381.8, which is 8% lower than its previous close. This drop marks a significant decline of 30% from its recent peak of ₹1,989.
