According to Motilal Oswal's research report dated February 02, 2026, the brokerage has maintained a Neutral rating on Central Depository Services (India) Ltd. (CDSL) with a target price of ₹1,410. The target price is premised on a P/E multiple of 44x on FY28E earnings. As reported by Moneycontrol, this recommendation comes as part of Motilal Oswal's comprehensive stock analysis and outlook for the company. The stock is currently trading at ₹1,410 on NSE, representing a 26.21% fall from its 52-week high, indicating some market pressure despite the positive analyst rating.
CDSL's operating revenue rose 9% year-on-year but declined 5% quarter-on-quarter to ₹3.0 billion, which was in line with expectations according to Motilal Oswal's analysis. The sequential decline was attributed to a 2% drop in annual issuer charges and 5% decline in IPO & corporate action charges to ₹1.1 billion and ₹590 million respectively. For the nine-month period ending FY26, the company's operating revenue grew 3% year-on-year to ₹8.8 billion. The company, incorporated in 1997 and registered with SEBI as a depository, continues to provide convenient, dependable and secure depository services in the financial services sector.
As reported by Motilal Oswal, EBITDA remained flat year-on-year but declined 9% quarter-on-quarter to ₹1.6 billion, resulting in an EBITDA margin of 52.9% compared to 57.8% in Q3FY25 and 55.7% in Q2FY26. For the nine-month period, EBITDA declined 9% year-on-year to ₹4.7 billion. Operating expenses grew 22% year-on-year and remained flat quarter-on-quarter to ₹1.4 billion, driven by a 25% year-on-year increase in employee costs and 21% increase in other expenses. The company's current market position reflects its established role in India's financial infrastructure as a SEBI-registered depository.
According to Motilal Oswal's research report, the brokerage has reiterated its Neutral rating on the stock with the specified target price of ₹1,410. The recommendation reflects the company's current market position and future earnings potential, with the target price based on projected financial metrics for the FY28 fiscal year. The analysis indicates a cautious but stable outlook for CDSL's stock performance in the near term, despite the stock's current 26.21% decline from its 52-week high on NSE, suggesting some market volatility in the recent trading session.