CDSL shares slump over 19% in six months: Time to buy the dip or stay cautious?

Shares of Central Depository Services (India) Ltd (CDSL) slipped 2.36 per cent on Monday to close at Rs 1,242. At this level, the stock has declined over 19 per cent in the past six months, reflecting sustained selling pressure after a strong earlier rally.

The company reported a mixed set of numbers for the March 2025 quarter. Net profit declined 21 per cent year-on-year (YoY) to Rs 80 crore, compared with Rs 100 crore in the same quarter last year. However, revenue rose 17 per cent YoY to Rs 262.85 crore from Rs 224.49 crore, while EBITDA increased 6.7 per cent to Rs 116.75 crore from Rs 109.43 crore.

Total income stood at Rs 268 crore, up 5 per cent from Rs 265 crore in the year-ago period, but declined 20 per cent sequentially from Rs 334 crore, indicating some moderation in momentum on a quarter-on-quarter basis.

The board approved a final dividend of Rs 12.75 per share for FY26.

On the operational front, CDSL crossed a key milestone, becoming the first depository to surpass 18 crore demat accounts as of March 31, 2026. This builds on the 15.30 crore accounts recorded a year ago, with approximately 2.71 crore new accounts added during FY26, highlighting continued retail participation in capital markets.

That said, a few analysts remained cautious to bearish on the counter in the near term, while one suggested accumulating from a long-term perspective.

Kranthi Bathini, Equity Strategist at WealthMills Securities, noted, "Given the kind of market infrastructure and depository, the stock offers decent value for investors with a long-term view. One should accumulate CDSL for a medium- to longer-term perspective."

Ravi Singh, Chief Research Officer at Mastertrust, stated, "CDSL took a noticeable hit today. This decline marks a sharp reversal for the stock, which recently failed to push through heavy resistance placed in the Rs 1,364–1,413 zone. CDSL is aggressively testing its foundational base between Rs 1,196 and Rs 1,220. A decisive close below Rs 1,196 could trigger a fresh wave of technical selling, risking a much deeper correction."

Singh added that the immediate price action dictates caution, and for now, traders are best advised to sit on the sidelines.

According to AR Ramachandran, a Sebi-registered research analyst at Tips2trades, "CDSL's stock is bearish on daily charts with strong resistance at Rs 1,272. A daily close below the support of Rs 1,249 could trigger a fall towards Rs 1,196 in the near term."

Vatsal Bhuva, Technical Analyst at LKP Securities, said, "The stock has broken below its crucial support level of Rs 1,255, indicating renewed selling pressure. It may continue to drift lower, with a possibility of filling the gap and testing Rs 1,200 support level."