NSE-listed midcap company, Central Depository Services (CDSL) touched a new all-time high of Rs 1,664.40 apiece on August 23, after the stock turned ex-bonus for bonus issue in the ratio of 1:1. This is ahead of the record date of August 24 for the said reward. Thanks to bonus reward, CDSL shares have given tremendous returns over 5 years, as investors' number of shares doubled and bagged more than 1,653.31% gains.
CDSL Share Price:
On the ex-bonus date, August 23, after market hours, CDSL shares ended at Rs 1,585 apiece, up by 9.4% with a market cap of Rs 33,126.50 crore. During the trading hours of Friday, the stock touched a new all-time high of Rs 1,568.50 apiece, while its adjusted 52-week low is at Rs 553.68.
The prices of CDSL have been adjusted to a 1:1 bonus issue ratio.
Before ex-bonus date, CDSL shares were at Rs 2,890 apiece on NSE. The stock's all-time high earlier was Rs 2,989 apiece which was earlier recorded on August 22, 2024.
CDSL Bonus Issue:
CDSL is allotting bonus issue of 1:1 ratio. The record date to determine eligible shareholders is fixed on August 24. However, since, August 24 is Saturday and the market is closed by default on the weekend. The eligible shareholders are those who are holding CDSL shares in their demat account by the end of August 23, the ex-bonus date.
The bonus issue of a 1:1 ratio means that CDSL is issuing 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.
Calculate Bonus Issue Gains:
Data from NSE showed that in 2019, before the adjustment of the bonus issue ratio, the lowest price of CDSL was Rs 180.80 apiece recorded on August 5, 2019.
So let's assume, an investor bought 1,000 shares of CDSL on August 5, 2019, for Rs 180.80 apiece, their investment will value at Rs 1,80,800.
If the same investor holds his or her shares by the end of August 23, 2024, then they will receive another 1,000 bonus shares. This will take their total to 2,000 shares of CDSL. 2,000 shares at Rs 1,585 apiece, which is the closing price of August 23, 2024, will mean a corpus of Rs 31,70,000.
Hence, that investor will gain up to 1,653.31% or Rs 29,89,200 from August 5, 2019 to date.
BUY/HOLD CDSL Share Price?
As per the 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.
Among key fundamentals, as per the data, is that CDSL is a debt-free company since its debt-to-equity ratio is zero. Its Return on Equity(ROE) for the last financial year was 28.64%, more than 20% in the last financial year, indicating an efficient use of shareholder's capital to generate profit. Also, the stock price rose 169.54% and outperformed its sector by 115.25% in the past year.
Moreover, Mutual Fund Holding increased by 2% in the last quarter to 15.88. While promoter pledges are zero. Among the drawbacks is that CDSL's Price to price-to-earning ratio is 68.33, higher than its sector PE ratio of 20.14.
The average 1-year target is lower at Rs 1130.06 apiece at Trendlyne, hinting at a 27.95% potential downside ahead.
Central Depository Services Limited ("CDSL") was founded 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.
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