Is CDSL stock a good buy right now?

The company has reported a massive double-digit growth on all fronts like revenue, income, and net profit in the quarter ended September.

Central Depository Services Ltd (CDSL) is the leading provider of depository services in India. Having a monopolistic business, the company sees a brighter future as more and more demat accounts have been opened since last year. The company is enjoying increasing revenues and profits YoY and aims to do well in near future too.

CDSL is a mid-cap company with a market share of Rs 16,701 crore and a sector leader, the stock has zoomed 195% on a YTD basis. Interestingly, CDSL has a PE of 65.59 which is far less than its sector of 101.94, which shows that CDSL is not overly valued at this point. A major stake is held by the retail portion (41%) while the promoters, FII and DII hold 20%, 15% and 14% stake respectively.

In the last three months, 68 lakh demat accounts have been opened. The company has reported a massive double-digit growth on all fronts like revenue, income, and net profit in the quarter ended September. The company also clarified regarding their recent technical glitch and came up with positive commentary in their latest press release. It shows that the management is quite confident and believes in their work and commitment.

The stock of CDSL is up by over 6% on Monday and with this, it has marked a fresh high. The volume has also seen a sharp rise. It was consolidating since few days before shooting up. The RSI is at 75, which shows extreme bullishness of the stock. The stock is trading above all its key moving averages. The positive directional movement (+DMI) crossed the -DMI a few trading sessions back and is currently well above it. It shows strong strength and potential in the stock. It has taken out its all-time high and looks to move further in its uncharted territory. The stock looks technically strong on all fronts and fundamentally sound. CDSL is certainly an attractive bet and traders shouldn’t miss the opportunity in this stock.