CDSL Share Climbed 1827% After Covid: Is Midcap Overbought & Should You BUY Before Rs 12.5 Dividend Record?

Central Depository Services (India) Limited's (CDSL) share price has continued its winning streak for three consecutive days on Tuesday, June 3. The stock zoomed nearly 14% and is currently above Rs 1,700 levels. It is closing the gap towards the 52-week high limit steadily. Notably, CDSL has journeyed strongly after the Covid-era, rising from below Rs 90 to even hitting its all-time high of Rs 1,989.80 in a five-year span.

From March 23, 2020, to date, CDSL's share price has skyrocketed by over 1,820%.

CDSL Share Price:

CDSL is a BSE Ltd company and is only listed on NSE. At the time of writing, CDSL traded at Rs 1,710.65 apiece, up by 1.7%. Overall, the stock zoomed by nearly 3% after hitting an intraday high of Rs 1,730 apiece in the day.

The stock is less than Rs 280 away from hitting its 52-week high of Rs 1,989.80 apiece. CDSL has continued to extend its gains over the past month. The stock advanced by over 30% on a month-on-month basis. In a year, the stock rallied by 58.5%.

But since the first nationwide lockdown due to Covid, CDSL stock has shown extraordinary performance. On March 23, CDSL stock was around Rs 89.79 apiece, which is its lowest level in 62 months. The first Covid-19 lockdown was practised on March 24, 2020. Since then, CDSL stock has been up by 1,826.72%.

Let's say an investor bought CDSL shares for Rs 25,000 on March 23, 2020, their corpus value is at Rs 4,81,677.5 at Rs 1,730 apiece intraday high of June 3, 2025. The investor gained about a whopping Rs 4,56,677.5 on his or her investment of Rs 25,000. These gains are excluding the dividend and bonus benefits.

CDSL Share Price Technical:

According to the Trendlyne data, CDSL share price's RSI and MFI are at 84.2 and 91.1 as of now, which signals that the stock is overbought. RSI and MFI above 80 are considered strongly overbought, implying that the stock could see pullbacks ahead.

The Relative Strength Index (RSI) is an indicator that is widely followed as it tracks the momentum in the stock and enables traders to identify whether the respective stock is overbought or oversold. This eventually suggests the probability of buying and selling that stock.

Meanwhile, the money flow index (MFI) is yet another momentum indicator, which observes the money flow in the stock.

Data also showed that CDSL is trading above 8 out of 8 SMAs, and above 7 out of 9 Oscillators in the bullish zone.

CDSL Dividend 2025:

Recently, CDSL announced a final dividend for FY 24-25 of Rs. 12.50/- per equity share of the face value of Rs. 10/- (i.e., 125 % on the face value of equity share), subject to the approval of the shareholders at the ensuing 27th Annual General Meeting (AGM) of the Company.

Since August 2018, CDSL has delivered 9 dividends. The company paid about Rs 22 dividends per share in the last 12 months. Currently, it has a dividend yield of 0.84%.

The upcoming dividend will come after CDSL delivered a 1:1 bonus issue for the first time in August 2024.

BUY/SELL CDSL stock?

CDSL touched PL Capital's target and hence the brokerage suggests booking profit. But long-term investors can hold the stock.

"CDSL our Technical Pick BUY given at 1300 on 7-May has reached 1582 gaining 21.69% - From the Technical Desk we have suggested this stock is at a very nascent stage and gaining significantly, so we suggest to BOOK PROFIT and long-term investors can HOLD," said PL Technical Research in a note.

The overall consensus in CDSL is to HOLD the stock, as per Trendlyne. EPS is expected to grow by 2.5% in FY26. However, the average 1-year target price is at Rs 1264.60 apiece, hinting at a nearly 26% correction.

CDSL reported a net profit of Rs 100.39 crore in Q4FY25, declining from Rs 129.41 crore in Q4FY24 and Rs 129.80 crore in Q3FY25. Furthermore, revenue from operations also dropped to Rs 2,244.48 crore, plunging from Rs 2,407.82 crore in Q4FY24 and Rs 2,781.07 crore in Q3FY24.

However, FY25 PAT stood at Rs 526.33 crore, higher from Rs 419.55 crore in FY24. Revenue climbed to Rs 10,822 crore in the fiscal, against Rs 812.25 crore in FY24.

Central Depository Services Limited ("CDSL") was founded in 1999 to fulfil one goal: Convenient, Dependable and secured depository services. CDSL 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.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, or Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.