Mon Jan 27 07:38:09 UTC 2025: ## CDSL Stock Plunges Despite Strong Profit Growth

**Mumbai, [Date]** – Shares of Central Depository Services (India) Ltd. (CDSL) took a sharp dive today, hitting their lowest point since October 9th, despite the company announcing a 21% year-on-year increase in net profit for the December 2024 quarter.

While CDSL reported a robust bottom line of Rs 130 crore, up from Rs 107 crore in the same period last year, the growth lagged behind the 29.7% surge in total income to Rs 278 crore. This underperformance, coupled with a sequential decline in both profit and income compared to the September quarter (Rs 161.96 crore profit and Rs 358.51 crore income), fueled the sell-off.

The stock plummeted as much as 9.2% to Rs 1,362.05 before recovering slightly to trade 8.1% lower at Rs 1,381 apiece by mid-morning. This drop significantly outpaced the 0.5% decline in the NSE Nifty 50 Index. Trading volume was significantly higher than average, suggesting substantial investor activity. Technical indicators suggest the stock may be oversold.

Despite the recent fall, CDSL shares are still up 56% over the past 12 months. Analyst sentiment is mixed, with two recommending a ‘buy’, six a ‘hold’, and two a ‘sell’, according to Bloomberg data. The average 12-month price target, however, suggests a potential upside of 10.8%. The company also noted the opening of approximately 92 lakh new demat accounts during the December quarter. The reasons behind the market’s negative reaction to the otherwise positive results remain unclear.

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