Central Depository Services (India) Limited
Central Depository Services (India) Limited Fundamental Analysis
Central Depository Services (India) Limited (CDSL.NS) shows strong financial fundamentals with a PE ratio of 49.76, profit margin of 41.12%, and ROE of 27.69%. The company generates $11.6B in annual revenue with strong year-over-year growth of 33.23%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 90.0/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze CDSL.NS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentCDSL.NS demonstrates superior asset utilization.
Valuation Score
WeakCDSL.NS trades at a premium to fair value.
Growth Score
ExcellentCDSL.NS delivers strong and consistent growth momentum.
Financial Health Score
ModerateCDSL.NS shows balanced financial health with some risks.
Profitability Score
ExcellentCDSL.NS achieves industry-leading margins.
Key Financial Metrics
Is CDSL.NS Expensive or Cheap?
P/E Ratio
CDSL.NS trades at 49.76 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CDSL.NS's PEG of 75.10 indicates potential overvaluation.
Price to Book
The market values Central Depository Services (India) Limited at 13.60 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 34.05 times EBITDA. This signals the market has high growth expectations.
How Well Does CDSL.NS Make Money?
Net Profit Margin
For every $100 in sales, Central Depository Services (India) Limited keeps $41.12 as profit after all expenses.
Operating Margin
Core operations generate 49.04 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $27.69 in profit for every $100 of shareholder equity.
ROA
Central Depository Services (India) Limited generates $19.97 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Central Depository Services (India) Limited generates strong operating cash flow of $3.77B, reflecting robust business health.
Free Cash Flow
Central Depository Services (India) Limited generates strong free cash flow of $3.36B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $16.06 in free cash annually.
FCF Yield
CDSL.NS converts 1.42% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
49.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
75.10
vs 25 benchmark
P/B Ratio
Price to book value ratio
13.60
vs 25 benchmark
P/S Ratio
Price to sales ratio
20.46
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.20
vs 25 benchmark
ROCE
Return on capital employed
0.24
vs 25 benchmark
How CDSL.NS Stacks Against Its Sector Peers
| Metric | CDSL.NS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 49.76 | 18.75 | Worse (Expensive) |
| ROE | 27.69% | 815.00% | Weak |
| Net Margin | 41.12% | 2296.00% | Weak |
| Debt/Equity | 0.00 | 0.98 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 692.30 | Weak Liquidity |
| ROA | 19.97% | -21673.00% (disorted) | Strong |
CDSL.NS outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Central Depository Services (India) Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
381.08%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
396.44%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
561.11%
Industry Style: Value, Dividend, Cyclical
High Growth