The Indian stock market has been buzzing with activity lately, particularly with the shares of Central Depository Services Limited (CDSL). On March 28, 2025, CDSL shares saw a notable rise of 6% following a significant deal with L&T Realty Properties, reaching an intraday high of ₹1,259.80. This surge marks the largest intraday increase since March 18, 2024, and highlights the stock's impressive performance over the past five years, where it has delivered a staggering return of 1,062% to investors.
According to brokerage firm Motilal Oswal, CDSL is projected to continue its upward trajectory, with a target price set at ₹1,500, suggesting an additional potential return of 26%. This optimism is bolstered by the company’s robust financial performance, which has remained strong despite scrutiny from the Securities and Exchange Board of India (SEBI).
In the third quarter of fiscal year 2025, CDSL reported a net profit of ₹130 crore, up from ₹107 crore in the same period the previous year. The company's total income also rose significantly, reaching ₹298 crore compared to ₹236 crore a year earlier. Notably, CDSL opened 92 lakh new demat accounts during this period, marking a significant achievement in the sector.
Investors who put in ₹1 lakh into CDSL shares five years ago would now see their investment worth approximately ₹1,162,458, a remarkable return that underscores the stock's multibagger status.
However, the company is not without its challenges. SEBI issued a vigilance letter after conducting inspections from July 2023 to June 2024, as well as a DR site inspection from April 2023 to March 2024. The regulator advised CDSL to strengthen its internal systems and ensure compliance with all regulations, highlighting discrepancies in adherence to certain rules and circulars during the inspections.
Despite these concerns, market analysts remain positive about CDSL’s prospects. Vaishali Parekh, a market expert, recommends purchasing CDSL shares at ₹1,220, with a target price of ₹1,260 and a stop loss set at ₹1,185. This recommendation comes as part of a broader analysis of stocks to watch in the current market climate.
On the broader market front, the Nifty 50 index closed down by 73 points at 23,159.35, while the Sensex fell by 192 points to end at 77,414.92 during the last trading session on March 28. This decline has led investors to seek breakout stocks that could perform well in the current environment.
Other stocks recommended by analysts include ONGC, with a buy price of ₹246 and a target of ₹255, and Force Motors, which can be bought at ₹8,990 with a target of ₹9,800. Sumeet Bagadia has also suggested Simplex Infrastructure and Mangalore Chemicals and Fertilisers as potential buys, indicating a diverse range of investment opportunities in the market.
As of April 1, 2025, CDSL shares opened trading slightly lower at ₹1,218.95, down by ₹1.10 or 0.09%. This comes after reaching a 52-week high of ₹1,989.80 on December 17, 2024, and a low of ₹852.50 on March 28, 2024. The fluctuations in CDSL's stock price illustrate the volatility of the market, yet the long-term performance remains a point of interest for many investors.
Overall, CDSL’s journey over the past five years has been remarkable, and while there are regulatory hurdles to navigate, the company’s strong fundamentals and growth potential continue to attract investor interest. With a solid track record and a promising outlook, CDSL remains a key player in the Indian stock market landscape.
