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Last Updated on: 24 November, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo

Central Depository Services (India) Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: November 22, 2024, 11:26 pm

Market Cap 32,191 Cr.
Current Price 1,540
High / Low1,679/811
Stock P/E60.4
Book Value 73.2
Dividend Yield0.62 %
ROCE40.2 %
ROE31.3 %
Face Value 10.0
PEG Ratio2.44

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for Central Depository Services (India) Ltd

Competitors of Central Depository Services (India) Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
IMEC Services Ltd 7.03 Cr. 37.037.0/2.7010.0 8.790.00 %2.47 %1.85 % 10.0
Focus Business Solution Ltd 45.5 Cr. 99.0105/59.292.9 14.70.10 %16.1 %13.5 % 10.0
EKI Energy Services Ltd 697 Cr. 253508/207 1530.00 %24.0 %26.2 % 10.0
CMS Info Systems Ltd 7,799 Cr. 477616/35520.9 1241.20 %27.5 %20.5 % 10.0
Ashram Online.Com Ltd 6.31 Cr. 5.268.02/4.56210 10.60.00 %0.24 %0.08 % 10.0
Industry Average13,759.53 Cr1,069.2597.62260.000.36%15.43%13.49%9.05

All Competitor Stocks of Central Depository Services (India) Ltd

Quarterly Result

MonthSep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023
Sales8986103117146152137140149141125150207
Expenses35304044474946665857567079
Operating Profit5456637499103907591856880128
OPM %61%65%61%63%68%68%66%53%61%60%55%53%62%
Other Income121771319111162120192423
Interest0000000000000
Depreciation3322334455566
Profit before tax647169851151119877107998298145
Tax %23%23%25%24%25%25%20%25%25%25%23%25%25%
Net Profit495452648684785880756374109
EPS in Rs4.675.144.956.118.228.017.435.537.697.146.047.0410.42

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales969189105123146188196215344551555623
Expenses3655566059677787125132186236262
Operating Profit61363345647911010989212365319361
OPM %63%39%37%43%52%54%59%56%42%62%66%57%58%
Other Income22333523724138495957556686
Interest0000000000000
Depreciation435644710129111923
Profit before tax78666263131117141148136260409365424
Tax %29%23%21%31%31%26%27%23%22%22%24%24%
Net Profit555150439187104115107201312276321
EPS in Rs5.304.894.724.188.718.219.8710.8610.1619.1729.7826.4130.64
Dividend Payout %33%41%42%53%29%37%35%37%44%47%50%61%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)-7.27%-1.96%-14.00%111.63%-4.40%19.54%10.58%-6.96%87.85%55.22%-11.54%
Change in YoY Net Profit Growth (%)0.00%5.31%-12.04%125.63%-116.02%23.94%-8.96%-17.53%94.81%-32.63%-66.76%

Central Depository Services (India) Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:25%
5 Years:33%
3 Years:33%
TTM:66%
Compounded Profit Growth
10 Years:29%
5 Years:30%
3 Years:28%
TTM:66%
Stock Price CAGR
10 Years:%
5 Years:69%
3 Years:28%
1 Year:71%
Return on Equity
10 Years:23%
5 Years:26%
3 Years:29%
Last Year:31%

Last Updated: Unknown

Balance Sheet

Last Updated: November 15, 2024, 1:32 am

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024Sep 2024
Equity Capital104104104104104104104104104104104104209
Reserves2242492653754294945646197739881,1091,3591,320
Borrowings0000000000211
Other Liabilities87101122747392116138207232241317518
Total Liabilities4164554915536066907848621,0841,3261,4571,7812,048
Fixed Assets81074576757473106125342375
CWIP1000000023417444
Investments3423753894575035215936657099259371,1491,247
Other Assets647095929893115123278290221287423
Total Assets4164554915536066907848621,0841,3261,4571,7812,048

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity +2435432843798682193283249386
Cash from Investing Activity +-6-13-19018-67-67-33-107-146-126-249
Cash from Financing Activity +-18-23-23-28-31-38-20-51-47-94-158-169
Net Cash Flow-0-10129-26-1-13844-35-32

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow61.0036.0033.0045.0064.0079.00110.00109.0089.00212.00365.00317.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days342524393337364440302530
Inventory Days
Days Payable
Cash Conversion Cycle342524393337364440302530
Working Capital Days-160-223-253-100-79-92-79-90-109-75-44-22
ROCE %15%12%14%22%22%24%22%18%31%40%30%40%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthJun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Jun 2024
Promoters20.00%20.00%20.00%20.00%20.00%20.00%20.00%20.00%15.00%15.00%15.00%15.00%
FIIs0.00%0.00%0.00%0.00%0.00%15.65%15.83%14.67%15.10%15.25%18.16%14.00%
DIIs41.35%38.08%36.20%35.92%34.69%18.96%18.46%18.48%22.03%21.80%21.33%24.92%
Public38.64%41.92%43.79%44.07%45.31%45.40%45.71%46.85%47.87%47.94%45.51%46.09%
No. of Shareholders2,73,6284,93,3325,99,8046,94,9797,90,0557,97,0298,01,2208,28,8538,32,1258,09,3157,77,0308,28,805

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
Parag Parikh Flexi Cap Fund4,799,7271.53652.67589,6112024-11-23714.05%
Nippon India Small Cap Fund2,014,8590.73273.98589,6112024-11-23241.73%
Invesco India Contra Fund667,1620.7990.72589,6112024-11-2313.15%
Canara Robeco Equity Tax Saver625,0001.3884.99589,6112024-11-236%
PGIM India Midcap Opportunities Fund589,6110.8680.18589,6112024-11-230%
Invesco India Smallcap Fund400,4921.9754.46589,6112024-11-23-32.08%
HDFC Banking and Financial Services Fund391,0001.8553.17589,6112024-11-23-33.69%
Invesco India Focused 20 Equity Fund361,4472.849.15589,6112024-11-23-38.7%
PGIM India Small Cap Fund290,4442.3139.49589,6112024-11-23-50.74%
Aditya Birla Sun Life Banking And Financial Services Fund223,9141.0530.45589,6112024-11-23-62.02%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue10.0010.0010.0010.0010.00
Basic EPS (Rs.)40.1126.4129.7819.1710.16
Diluted EPS (Rs.)40.1126.4129.7819.1710.16
Cash EPS (Rs.)42.8628.7031.0720.1411.33
Book Value[Excl.RevalReserv]/Share (Rs.)144.23120.30108.7488.0473.29
Book Value[Incl.RevalReserv]/Share (Rs.)144.23120.30108.7488.0473.29
Revenue From Operations / Share (Rs.)77.7353.1252.7632.8921.54
PBDIT / Share (Rs.)55.9337.2440.3325.7214.18
PBIT / Share (Rs.)53.3235.3839.2324.8413.06
PBT / Share (Rs.)53.3135.3739.2324.8313.06
Net Profit / Share (Rs.)40.2526.8329.9719.2610.21
NP After MI And SOA / Share (Rs.)40.1026.4129.7819.1710.16
PBDIT Margin (%)71.9570.1176.4378.1865.84
PBIT Margin (%)68.5966.6074.3575.5160.62
PBT Margin (%)68.5866.5874.3575.5060.61
Net Profit Margin (%)51.7850.5156.8158.5547.40
NP After MI And SOA Margin (%)51.5949.7156.4458.2847.15
Return on Networth / Equity (%)28.6422.7328.4722.8314.66
Return on Capital Employeed (%)36.1429.0435.6528.0617.68
Return On Assets (%)23.5218.9323.4718.4812.29
Asset Turnover Ratio (%)0.500.390.390.310.23
Current Ratio (X)3.333.565.165.065.28
Quick Ratio (X)3.333.565.165.065.28
Dividend Payout Ratio (NP) (%)39.8956.8030.2223.4747.47
Dividend Payout Ratio (CP) (%)37.4653.0629.1422.4442.74
Earning Retention Ratio (%)60.1143.2069.7876.5352.53
Cash Earning Retention Ratio (%)62.5446.9470.8677.5657.26
Interest Coverage Ratio (X)5308.252915.2942568.8811684.655041.14
Interest Coverage Ratio (Post Tax) (X)3821.502101.2531639.398751.753630.87
Enterprise Value (Cr.)17880.869416.3415307.196690.822228.63
EV / Net Operating Revenue (X)22.0116.9627.7619.479.90
EV / EBITDA (X)30.5924.1936.3224.9015.04
MarketCap / Net Operating Revenue (X)22.0217.1128.0619.959.95
Retention Ratios (%)60.1043.1969.7776.5252.52
Price / BV (X)12.237.8214.157.823.09
Price / Net Operating Revenue (X)22.0317.1128.0619.959.95
EarningsYield0.020.020.020.020.04

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of Central Depository Services (India) Ltd as of November 24, 2024 is: 1,392.44

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of November 24, 2024, Central Depository Services (India) Ltd is Overvalued by 9.58% compared to the current share price 1,540.00

Intrinsic Value of Central Depository Services (India) Ltd as of November 24, 2024 is: 1,736.42

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of November 24, 2024, Central Depository Services (India) Ltd is Undervalued by 12.75% compared to the current share price 1,540.00

Last 5 Year EPS CAGR: 24.70%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a high average ROCE of 24.17%, which is a positive sign.
  2. The stock has a low average Working Capital Days of -110.50, which is a positive sign.
  3. The company has higher reserves (674.46 cr) compared to borrowings (0.31 cr), indicating strong financial stability.
  4. The company has shown consistent growth in sales (255.54 cr) and profit (184.62 cr) over the years.
  1. The stock has a high average Cash Conversion Cycle of 33.08, which may not be favorable.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in Central Depository Services (India) Ltd:
    1. Net Profit Margin: 51.78%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 36.14% (Industry Average ROCE: 15.43%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 28.64% (Industry Average ROE: 13.49%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 3821.5
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 3.33
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 60.4 (Industry average Stock P/E: 97.62)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 0
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

Central Depository Services (India) Ltd. is a Public Limited Listed company incorporated on 12/12/1997 and has its registered office in the State of Maharashtra, India. Company’s Corporate Identification Number(CIN) is L67120MH1997PLC112443 and registration number is 112443. Currently Company is involved in the business activities of Other financial service activities, except insurance and pension funding activities. Company’s Total Operating Revenue is Rs. 414.80 Cr. and Equity Capital is Rs. 104.50 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Services - OthersUnit No. A-2501, A-Wing, Marathon Futurex, Mumbai Maharashtra 400013shareholders@cdslindia.com
http://www.cdslindia.com
Management
NamePosition Held
Mr. Balkrishna V ChaubalChairperson & Public Interest Director
Mr. Nehal VoraManaging Director & CEO
Prof. Umesh BellurPublic Interest Director
Prof. (Dr) Bimalkumar N PatelPublic Interest Director
Mr. Sidhartha PradhanPublic Interest Director
Mrs. Rajeshree SabnavisPublic Interest Director
Mr. Gurumoorthy MahalingamPublic Interest Director
Prof. Varsha AptePublic Interest Director
Mr. P Masil Jeya MohanNon Independent Director
Ms. Sushri Kamala KantharajNon Independent Director

FAQ

What is the latest intrinsic value of Central Depository Services (India) Ltd?

The latest intrinsic value of Central Depository Services (India) Ltd as on 24 November 2024 is ₹1392.44, which is 9.58% lower than the current market price of ₹1,540.00.

What is the Market Cap of Central Depository Services (India) Ltd?

The Market Cap of Central Depository Services (India) Ltd is 32,191 Cr..

What is the current Stock Price of Central Depository Services (India) Ltd as on 24 November 2024?

The current stock price of Central Depository Services (India) Ltd as on 24 November 2024 is 1,540.

What is the High / Low of Central Depository Services (India) Ltd stocks in FY 2024?

In FY 2024, the High / Low of Central Depository Services (India) Ltd stocks is 1,679/811.

What is the Stock P/E of Central Depository Services (India) Ltd?

The Stock P/E of Central Depository Services (India) Ltd is 60.4.

What is the Book Value of Central Depository Services (India) Ltd?

The Book Value of Central Depository Services (India) Ltd is 73.2.

What is the Dividend Yield of Central Depository Services (India) Ltd?

The Dividend Yield of Central Depository Services (India) Ltd is 0.62 %.

What is the ROCE of Central Depository Services (India) Ltd?

The ROCE of Central Depository Services (India) Ltd is 40.2 %.

What is the ROE of Central Depository Services (India) Ltd?

The ROE of Central Depository Services (India) Ltd is 31.3 %.

What is the Face Value of Central Depository Services (India) Ltd?

The Face Value of Central Depository Services (India) Ltd is 10.0.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in Central Depository Services (India) Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE