Stock in Action - CDSL 14 October 2024

Highlights

1. CDSL's share price has gained over 67% year to date in 2024, making it one of the top performers in the Indian market.

2. CDSL's financial performance has shown growth over the past year.

3. CDSL's quarterly earnings report highlighted an improvement in net profit in the last quarters reaching ₹134Cr in June

4. For CDSL's stock analyst forecasts positive trends for the future.

5. CDSL's share price moved from ₹1,350 to ₹1,550 during September and October 2024.

6. CDSL stock has outperformed the market, delivering a positive return of over 122% in the past year.

7. CDSL is currently trading at ₹1520 showing a 2.82% increase as of 11:47 am on NSE.

8. CDSL is benefiting from the increase in the number of demat accounts. The total number of demat accounts in India surged to 175 million in September 2024.

9. Analysts expect that the range of ₹1,540 to ₹1,570 will serve as an intermediate resistance. A decisive breakthrough above this level will likely trigger the next phase of the rally in the stock.

10. As per the June quarter filings the company has a 15% promoter holding, 24.17% DII holding and 14.03% foreign institutional investor (FII) holding.
 

Why is Bandhan Bank in the News today?

CDSL is benefiting from the increase in the number of demat accounts. The total number of demat accounts in India surged to 175 million in September 2024. In September 2024 total number of demat accounts in India increased by 4.4 million bringing the average monthly addition for the fiscal year 2025 (FY25) to 4 million accounts.

The report indicates a significant rise in the number of new demat accounts being opened. Central Depository Services Limited is continuing to grow its market share in this area. On the other hand, National Securities Depository Limited saw a decrease in its market share dropping by 410 basis points for total demat accounts and 90 bp for new accounts compared to the same period last year.

Additionally, National Stock Exchange reported a month on month increase of 2.4% in active clients reaching a total of 47.9 million in September 2024. The five largest discount brokers now account for 64.5% of all active clients on NSE up from 61.9% in September 2023.

Analyst's View on Bandhan Bank

Experts note that the increase in new demat accounts indicates a rise in participation from retail investors which is contributing to overall market growth. This trend shows that more individuals are entering the market driven by a consistent flow of initial public offerings and their successful listings. Some experts suggest that part of this increase may be due to investors opening multiple accounts in response to the IPO surge. In September a total of 12 IPOs were launched highest number in the current calendar year raising a combined ₹11,058 crore.

Analysts view the growth in demat accounts as a positive indicator of increased equity market participation. More people are investing in both primary and secondary markets with an emphasis on long term wealth creation and retirement planning. As financial awareness continues to grow they expect the number of demat accounts to increase steadily.

CDSL Financial

CDSL recorded impressive financial performance for the quarter ending June 2024. The company reported a 82.4% increase in profit after tax reaching ₹134 crore compared to the same quarter last year. Additionally CDSL experienced a 72% rise in revenue from operations, totaling ₹257 crore.

Conclusion

CDSL's strong performance in 2024 reflects its growth in the demat account segment driven by increasing retail investor participation. The company's impressive financial results including an 82.4% rise in profit after tax and a 72% increase in revenue highlight its market position. With the total number of demat accounts in India reaching 175 million and ongoing interest in IPOs, CDSL is poised for further growth. Analysts remain optimistic about the stock expecting continued positive trends as financial awareness expands among investors. Overall, CDSL's prospects look bright as it capitalizes on the growing equity market.