CDSL shares are down 45% from their peak; Here is another trigger for the stock

Shares of Central Depository Services Ltd. (CDSL) have declined nearly 40% so far in the first two-and-a-half months of 2025. This drop has also meant that the stock has nearly halved from its peak, which is at ₹1,989.The stock of the depository service provider has declined 11% in the last one month itself.
Recent data suggests that the addition in demat accounts for the month of February was at the slowest pace in 21 months, or since May 2023.
A total of 19.04 crore accounts were registered as of February 2025 with CDSL and its peer, the IPO-bound NSDL, compared to 18.81 crore in the month of January. This means, a total of 22.6 lakh demat accounts were added in February, which is a decline of 20% compared to January and 48% compared to February last year.
The demat account addition peaked in January 2024, when 46.8 lakh demat accounts were added and the pace of addition has been declining since January 2025.A correction in the Indian equity market, which has resulted in the Nifty Midcap and Nifty Smallcap indices correct up to 25% from their peak, stricter F&O norms to curb excessive trading and a decline in the number of IPOs could be some of the key factors behind the decline in demat account additions.

Out of the 10 analysts that have coverage on CDSL, only two of them have a “buy” rating, five of them say “hold”, while three have a “sell” rating on the stock. Despite the steep fall, consensus is projecting a potential upside of 22% for the stock.

Shares of CDSL had recovered from the lows of the day, currently trading 0.5% lower at ₹1,102. Along with CDSL, the slowdown in demat account addition also brings the spotlight on stocks like Angel One, which has also nearly halved from its peak of close to ₹4,000, CAMS, which is down 38% from its peak and other names like BSE, Motilal Oswal and the likes.

BSE shares are in the F&O ban today, which means no new positions can be created in this stock.