CDSL share price dives 5% after 22% YoY dip in Q4 PAT, dividend announcement. Time to buy, sell or hold?

Stock market today: Shares of NSE-listed Central Depository Services Limited or CDSL cracked nearly 5% in Monday's trading session following the announcement of the fourth quarter results and dividend payout.

CDSL, over the weekend, posted a 22% year-on-year (YoY) decline in consolidated net profit to ₹100 crore in Q4 FY25 from ₹129 crore posted in Q4 FY24. On a quarter-on-quarter (QoQ) basis, too, the net profit was lower by 23% as against ₹130 crore posted in the preceding December 2024 quarter.

Its total income for the March 2025 quarter stood at ₹256 crore as against ₹267 crore in the same quarter a year ago, recording a 4% decline on a YoY basis. Meanwhile, sequentially, the decline was sharper as the figure declined 14% from ₹298 crore posted in the third quarter of FY25.

CDSL Dividend

CDSL's board also recommended a final dividend for its shareholders of ₹12.50 apiece, while declaring the results for the March 2025 quarter.

"The Board of Directors has recommended a final dividend of ₹ 12.50 per equity share of the face value of ₹ 10 per share for the financial year 2024-25, subject to the approval of the Shareholders," the company said in a NSE filing on Saturday.

According to Trendlyne data, in the past 12 months, Central Depository Services has declared an equity dividend amounting to ₹22 per share. At the current market price, CDSL's dividend yield stands at 1.74%.

CDSL Shares: Technical Outlook

CDSL share price opened at ₹1,279.90, 3.6% below its previous closing price of ₹1,328.20. The stock extended losses thereafter, hitting the day's low of ₹1,260, down 5.13%.

From its 52-week high of ₹1989.90 apiece, CDSL shares are trading 37% lower as of today's low. Meanwhile, from their 52-week low of ₹917.63, the stock has rallied 37%.

The stock settled the trade on NSE at ₹1,311, down 1.29%.

Anshul Jain, Head of Research at Lakshmishree Investments, said post-buying climax at all-time highs and a sharp 47% correction, CDSL is currently trading in a defined range between 1085 and 1344.

“The stock is now facing rejection near the upper boundary of the range. A close above 1365 will negate this rejection and open the path for a fresh breakout. However, if the rejection gets follow-through below 1250, it will trigger a move towards the range low of 1085,” Jain opined.

Nitin Jain, Sr. Research Analyst at Bonanza Group, said CDSL’s net account opening declined by 30% in Q4FY25 when compared to Q3FY25. The figure for Q4Y25 stood at 64 lakh, compared to 92 lakh in Q3FY25. Demat custody also fell to ₹71 lakh crore from ₹75 lakh crore during the December quarter.

“The factors impacting the stock are weak earnings, slowing demat account opening and market volatility. We would recommend ‘Hold’ for now,” said the Bonanza analyst.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.