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CDSL’s revenue dropped by 14%, driven by lower transaction charges, online data charges, and other income.
Higher employee expenses and computer technology costs partially offset the reduction in other expenses.
Margins contracted by 424 basis points quarter-on-quarter to 57.8%.
Other income nearly halved, leading to a 20% quarter-on-quarter decline in net profit.
Net accounts opened during the quarter fell to 92 lakh from 1.18 crore in the previous quarter, while transaction charges income fell to ₹59 crore from ₹83 crore in September.
Brokerage firm B&K Securities downgraded CDSL to “sell” from its earlier rating of “hold” and has also cut its price target on the stock to ₹1,100 from ₹1,300 earlier. The revised price target implies a potential downside of 18% from Wednesday’s closing levels.
Nuvama has also cut its price target on CDSL to ₹1,510 from ₹1,740 earlier, while maintaining its “hold” rating. The brokerage cited the sluggish trend in secondary market volumes and the potential negative impact on primary market activity as the key reasons behind the cut.
Out of the 10 analysts that have coverage on CDSL, two of them have a ‘Buy’ rating on the stock, while five analysts have a ‘Hold’ rating and the remaining three have a ‘sell’ rating on the stock.
Shares of CDSL are currently trading 6.15% lower at ₹1,261.45. The stock is down over 36% from its recent peak of ₹1,989.
