NSE-listed stock market-related transactions settlement company, Central Depository Services (CDSL) share price touched an all-time high on August 19, after board of directors approved 1:1 bonus issue. CDSL is a multibagger and is set to reward investors with free shares. This also comes after CDSL stock paid dividends of Rs 22 per share recently.
CDSL Share Price:
CDSL stock ended at Rs 2,883 apiece on NSE, with a market cap of Rs 30,127.35 crore. On August 19, the company touched a new all-time high of Rs 2,955 apiece, while the stock has more than doubled from its 52-week low of Rs 1,107.35 apiece.
In a year, the stock rallied by nearly 151%.
CDSL Bonus Issue:
As per the regulatory filing on August 17, CDSL announced that Shareholders of the Company in the 26th Annual General Meeting held today, i.e. August 17, 2024 have approved the issuance of Bonus Shares.
CDSL will reward bonus issue of 1:1 ratio. The record date to determine eligible shareholders is fixed on August 24. Hence, CDSL shares will also turn ex-bonus on August 24 as well.
How to calculate gains?
The bonus issue of 1:1 ratio means that CDSL will issue one new fully paid-up Equity Share of ₹10/- (Rupees Ten Only) each for free against every 1 (One) existing fully paid-up Equity Share of ₹10/- (Rupees Ten Only) each held by the eligible Shareholders of the Company as on the Record Date.
Hence, to be eligible investors must first ensure to have CDSL stock in their portfolio by end of the record date. Any buy or sell after August 24, will not be eligible for the reward.
So let's say, if an investor had 500 shares of CDSL in their demat accounts by end of August 24, then they will be allotted with 500 bonus shares as well (500X1). This will take the total shareholding to 1,000 shares in CDSL.
In 1:1 ratio, the share price is adjusted to the bonus action, while the number of shares doubles.
CDSL Dividend:
In July 2024, CDSL turned ex-dividend for a final dividend for the financial year 2023-24 of Rs 19/- and a special dividend of Rs 3/- per equity share of the face value of Rs 10/- bringing the total dividend payout to Rs 22/- per equity share.
CDSL Share BUY/HOLD?
As per Trendlyne data, the consensus recommendation from 9 analysts for Central Depository Services (India) Ltd. is HOLD. EPS is expected to grow by 22.3% in FY25.
In its latest report, ICICI Securities said,"We factor in FY24-26E revenue/EBITDA/PAT CAGR of 23%/25%/23%. Accordingly, CDSL's core EPS is estimated at INR 44.2/INR 41.6 for FY25/26E, respectively. We also add free cash investments of INR 170 per share to the valuation. Our 40x multiple reflects strong growth in capital markets (effect of higher demat account is permanent), lower regulatory risk among capital market plays, possibility of operating leverage ahead and growth optionality in insurance depository business."
Central Depository Services Limited ("CDSL") was found in 1999 to fulfil one goal: Convenient, Dependable and secured depository services.
The depository is a Market Infrastructure Institution (MII) and a crucial part of the Capital market structure, providing services to all Market participants - Exchanges, Clearing Corporations, Depository Participants (DPs), Issuers and Investors.
Click it and Unblock the Notifications
Sign in with Google