CDSL Share Price: All You Need to Know

Every time you invest in stocks or apply for IPOs, this company stands to gain, whether you make a profit or a loss.

This is Central Depository Services (India) Limited, a critical market infrastructure company in the Indian stock market. 

In recent years, CDSL has seen a boom in its business, all thanks to the financialization trend evolving in India. 

As a result, driven by strong growth in retail participation in the market, CDSL share price has surged more than 1200% in the last five years.

In this article, we will do a deep dive analysis of CDSL share price and analyse its future growth potential. 

CDSL – A Brief Overview

The primary business of CDSL is acting as a central depository in India. It offers demat services to investors in the stock market through a network of depository participants, which include stock brokers, banks, and other financial institutions. Therefore, CDSL electronically stores shares for investors and also acts as a clearing agent. 

It also offers value-added services like e-voting for shareholders, e-KYC for onboarding investors, and record-keeping for unlisted shares.

CDSL manages the highest number of demat accounts in India, managing over 15 crore accounts with securities worth over ₹71 lakh crore in custody.  

The company operates a transaction-based revenue model, earning fees from demat accounts, maintenance, transaction charges, corporate actions, and value-added services.

CDSL Management Team

Nehal Vora is the Managing Director and CEO of CDSL and has been leading the company since 2019. Before joining CDSL, he had worked with BSE, DSP, Merrill Lynch, and SEBI. Vora’s engagement goes beyond CDSL, and he has been a member of many SEBI committees.

Amit Mahajan is the Chief Technology Officer and has been with the company since October 2019. He is a BITS Pilani alumnus and has worked with organisations like BSE, Reliance Infosolutions, and Internet ExchangeNext.com. 

Girish Amesara is the Chief Financial Officer and has been with the company since November 2019. He is a qualified Chartered Accountant and has worked with organisations like the BSE and The Bombay Store before joining CDSL.

Rajesh Saraf is the Chief Data and Operations Officer and has joined CDSL in October 2022. Prior to joining CDSL, he was working with BSE Ltd. as Chief General Manager. 

Nayana Ovalekar is the Chief Regulatory Officer and has been with the company since October 2003. 

CDSL Shareholding Pattern

Mutual funds hold a 7% stake in CDSL, while insurance companies, including LIC, hold nearly 12.5% stake.

CDSL Financials

Total Income

CDSL reported an 8.5% growth in total income to Rs 984.5 crores in FY25, compared to Rs 907.3 crores in FY24. 

In the last five years, its revenue has witnessed a 146% jump, from Rs 400.6 crores in FY21 to Rs 984.5 crores in FY25. 

Net Profit

The company’s net profit improved by 25.4% year-over-year to Rs 526.3 crores in FY25, from Rs 419.65 crores recorded in FY24. And, since FY21, it improved by 161%, from Rs 201 crores. 

Key Financial Metrics

Debt-to-Equity Ratio: CDSL has no debt on its books, making it a debt free company. 

Return on Equity (ROE): In FY24, the ROE of the company improved to 34% from 29.97% in FY23.

Return on Capital Employed (ROCE): The ROCE of the company improved to 40.22% in FY24 from 35.58% in FY23. 

CDSL Share Price Performance Analysis

CDSL share price was trading at Rs 129 levels on 20th June 2020, and it rose to Rs 1,777 level on 6th June 2025. An increase of nearly 12.5 times in five years. 

The 52-week high level of CDSL share price is Rs 1,990.

Source: Tradingview

The company has a consistent track record of paying dividends to shareholders. In FY24, it paid Rs 22 as dividends, and in FY25, it paid Rs 12.5 as dividends. At the current CDSL share price of ₹1,776, the dividend yield of CDSL is 0.53%. 

CDSL Share Price Valuation Analysis

Earnings Per Share (EPS)

The EPS growth of CDSL has been consistent and has more than doubled in the last 5 years, from Rs 9.59 in FY21 to Rs 25.20 per share in FY25.

Period	FY21	FY22	FY23	FY24	FY25
EPS (Rs)	9.59	14.89	13.20	20.05	25.20

Price-to-Book Value (P/B Ratio)

As of 7th May 2025, CDSL share price is trading at a price-to-book value of 21.1 times. The median 5-year Price-to-book value is 14.2 times, largely indicating the stock is trading at a premium valuation compared to its book value. 

Source: screener

Price-to-Equity Ratio (PE Ratio)

As of 7th May 2025, CDSL share price is trading at a PE of 70.5. Meaning that for every Rs 1 of earnings, you are paying Rs 70.5 as a premium. The 5-year median PE of the CDSL share price is 47.8 times, indicating that the stock is trading at a premium valuation compared to its historical averages.

Source: screener

CDSL Share Price: Future Growth Potential

CDSL share price growth over the last five years was driven by business and earnings expansion. 

The number of demat accounts has more than tripled since 2020, from 4 crore demat accounts in 2020 to over 15 crore at the end of March 2025. The rapid rise in account openings has fueled CDSL’s transaction volumes, data services, and fee income. 

Going forward, the outlook remains promising. Rising investors’ appetite for equity investments, mutual fund investments, and regulatory emphasis on digitization are providing structural tailwinds to CDSL. The growing IPO pipeline and steady capital market allocation activity also support CDSL’s core depository business. 

A unique strength of CDSL lies in its platform-based business model. Whether it manages 1 crore or 15 crore demat accounts, the incremental cost of servicing additional accounts remains marginal. This operating leverage allows CDSL to benefit from economies of scale, where revenue and profitability can grow much faster than costs, improving margins as volumes expand. This can also be seen in its higher operating margin. 

However, there are certain risks and challenges for the business. 

Regulatory Changes: CDSL operates in a highly regulated industry. Currently, CDSL has a market share of more than 70% in depository services. Therefore, any changes in SEBI regulations regarding pricing, competition, or market structure could impact the company’s business model or profitability.

Dependence on Market Sentiment: CDSL’s business performance is directly tied to stock market activity. A prolonged downturn in the market or reduced retail investor participation can lead to slower growth in demat account additions and transaction volumes. 

Increasing Competition: While NSDL is the only major competitor today, any potential new entrant or technological innovation in securities record-keeping could disrupt the current duopoly.

FAQs

What does CDSL do?

CDSL is a critical market institution company and is one of the two depositories in India that offer demat services to investors. It stores stocks and other financial instruments in electronic format. 

Is CDSL a government company?

No, CDSL is not a government company. It is promoted by entities like SBI and BSE, and is regulated by the market regulator, SEBI. 

How has the CDSL share price performed in the last 5 years?

CDSL is a multibagger stock, and in the last five years, it has returned more than 1250% to investors. CDSL share price rose from Rs 129 in June 2020 to Rs 1,777 in June 2025. 

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