Budget 2025: Sumeet Bagadia Recommends This Stock For Big Gains For Your Portfolio

Central Depository Services (India) Limited (CDSL), founded in 1999, is an essential part of the Indian Market Infrastructure Institution (MII), enabling electronic securities holding and transactions as well as trade settlement. It serves a wide range of capital market firms, including depository participants, issuers, investors, RTAs, clearing organisations, and exchanges. With over 14.65 crore+ demat accounts under management and partnerships with over 570+ depository participants, CDSL stands out as the only listed depository in Asia. With a market valuation of Rs 26,584.80 Cr, Central Depository Services (India) Limited (CDSL) shares closed 1.51% down on Thursday at Rs 1,272 on the NSE. Nonetheless, Choice Broking executive director Sumeet Bagadia has chosen CDSL as its Budget 2025 pick and recommended buying the stock at a target price of Rs 1440/1510.

Central Depository Services (India) Share Price Target

Buy CDSL @ 1300 & add Upto 1264, Target of 1440/ 1510

CDSL is currently trading at Rs 1,300 after correcting 37.56% from its all-time high. Recently, the stock has shown signs of reversal from its demand zone near Rs 1,200, supported by significant trading volume. This suggests the potential for further upward momentum, with key resistance levels and targets at Rs 1,440 and Rs 1,510. On the downside, strong support is evident around Rs 1,200.

Moreover, CDSL is trading above crucial Exponential Moving Averages (EMAs), including the 20-day and 50-day, reinforcing a bullish outlook and indicating the possibility of sustained price appreciation. The Relative Strength Index (RSI) is currently at 41, reflecting a downward trend but also signalling that the stock is approaching oversold territory, potentially setting the stage for a rebound.

A prudent strategy would be to consider buying opportunities on dips around Rs 1,264, with a well-defined risk management approach. Given the technical setup and current market conditions, CDSL presents a promising buying opportunity for traders targeting Rs 1,440 and Rs 1,510, provided that appropriate stop-loss measures are implemented.

Central Depository Services (India) Q3 Financials

In the December 2024 quarter (Q3 FY25), the depository's net income dropped 26.27 percent year on year (YoY) to Rs 298 crore from Rs 236 in the same time the previous year. Nonetheless, CDSL's net profit for the current quarter climbed 21.49 percent (YoY) to Rs 130 crore, up from Rs 107 crore during the same period the previous year. During the quarter, profit before tax (PBT) rose 16.13% year over year to Rs 168.37 crore. During Q3FY25, total expenses shot up by 45.03% year over year to Rs 130.45 crore. As of December 31, 2024, CDSL was the first depository to register over 14.65 crore demat accounts; nonetheless, the corporation said that over 92 lakh fresh demat accounts were registered in the third quarter of FY 2024-2025.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor 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.