Central Depository Services (CDSL) share price witnessed buying sentiment on July 4th after falling by nearly 3% on NSE yesterday. CDSL stock is in focus due to its double rewards update this week. CDSL has not only fixed record date for hefty dividend payout, but also announced bonus issue in the ratio of 1:1 for the first time ever.
CDSL Share Price:
At the time of writing, CDSL share price jumped by Rs 8 or 0.34% on NSE to trade at Rs 2,327.65 apiece. In the early trade, the stock gained by 1.33% to an intraday high of Rs 2,350.55 apiece.
In the previous session, the stock dipped by 2.99% to Rs 2,319.65 apiece.
The stock's 52-week high and low is at Rs 2,538.65 apiece and Rs 1,107.35 apiece respectively. YTD, the stock climbed over 28%.
CDSL Bonus Issue:
CDSL has recommended the issuance of Bonus Shares to the Shareholders of the Company in the ratio of 1:1 i.e. 1 (One) new fully paid-up Equity Share of ₹ 10/- (Rupees Ten Only) each for every 1 (One) existing fully paid-up Equity Share of ₹ 10/- (Rupees Ten Only) each to the eligible Shareholders of the Company as on Record Date, subject to the approval of the Shareholders and other statutory/regulatory approvals, consents, permissions, conditions, and sanctions, as required.
Hence, the bonus issue is of a 1:1 ratio.
CDSL said, "The Company will inform the "Record Date" for determining eligible Shareholders entitled for issuance of Bonus Shares, in due course."
According to the regulatory filing, the issuance of Bonus Shares shall be from capitalization of free reserves including general reserves and retained earnings of the Company subject to the approval of the Shareholders. As of March 31, 2024, CDSL has general reserves of Rs 10,94,93,000.
CDSL plans to complete the bonus issues distribution within two months from the date of the Board approval i.e. on or before September 01, 2024.
CDSL Dividend:
Additionally, CDSL has also fixed Tuesday, July 16, 2024, as the "Record Date" for the purpose of determining the Shareholders eligible to receive dividends for the financial year 2023-24. The Dividend, if approved at the AGM, will be paid within 30 days from the conclusion of the AGM.
CDSL will pay a final dividend for the financial year 2023-24 of ₹ 19/- and a special dividend of ₹ 3/- per equity share of the face value of ₹ 10/- bringing the total dividend payout to ₹ 22/- per equity share.
BUY/SELL/HOLD CDSL Share?
As per Trendlyne data, the consensus recommendation from 9 analysts for Central Depository Services (India) Ltd. is HOLD. Of the total, 1 analyst has recommended 'STRONG BUY' on CDSL, while 2 analysts have suggested 'BUY'. Meanwhile, 5 analysts have recommended 'HOLD'. And only 1 analyst has said Strong SELL on CDSL.
However, the average target price for a 12-month timeframe is lower than the current market price on CDSL to Rs 2119 apiece, hinting at an over 9% potential drop ahead.
CDSL is a Depository is a facilitator for holding of securities in the dematerialised form and an enabler for securities transactions. The company 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. CDSL is only listed on NSE.
Disclaimer: The write-up is just for information purposes, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.
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