CDSL share price surges over 5%, hits 52-week high on strong Q4 earnings. Should you buy, hold or sell?
- Central Depository Services share price hits 52-week high after doubling net profit to ₹129 crore in Q4FY24. Total income rose by 86% to ₹267 crore. Full fiscal year net profit increased by 52% to ₹420 crore. Stock in strong uptrend with positive bias according to analyst.
Central Depository Services share price surged over 5% on Monday's session to touch a 52-week high following the leading depository's robust Q4FY24 results.
On Saturday, Central Depository Services (India) Ltd (CDSL) said that, for the quarter ended March, its net profit had doubled to ₹129 crore. During the same quarter last year, it had reported a net profit of ₹63 crore.
From ₹144 crore in the same period last year to ₹267 crore in the March quarter of 2023–24, the total income increased by 86%. The depository recorded a net profit of ₹420 crore for the whole fiscal year 2023–24, a 52% increase over the previous year. With a 46% increase, total income in FY24 was ₹907 crore.
CDSL share price today opened at ₹2,185 apiece on NSE, the stock touched an intraday high of ₹2,199.90 and an intraday low of ₹2,132.50.
According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the stock has been in a strong uptrend, and post-result prices have seen a strong gap-up opening. The bias remains positive, and in the near term we may see an extended upmove. Any dip can be considered a buying opportunity, with 2,050–2,080 as support and 2,250 as resistance.
A final dividend of ₹19 per equity share for FY24 was additionally recommended by the board, subject to shareholder approval.
The total dividend payment per equity share will be ₹22 after the recommendation of a special dividend of ₹3 per equity share. Shareholder approval is required for this.
Brokerage Nuvama Institutional Equities, has raised its target price to ₹2,270 from ₹2,090. The domestic brokerage has maintained a ‘hold’ rating for the stock.
Transaction fees, IPO fees, and KRA/KYC fees are cyclical categories that generated revenue increase of 93% YoY/12.3% QoQ to ₹241 crore (11% over forecast), according to the brokerage. A total of 15.6 million demat accounts (76.4% share) were added in Q4, accounting for 10.9 million of the additional share. APAT increased 104.8% YoY/20.3% QoQ to ₹129 crore, while EBIT margins were stable at 61.4% (+13bp QoQ), resulting in an EBIT beat of 10.9%.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.
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