CDSL share price - Central Depository Services Limited Analysis and update | Should I Buy, Sell or Hold | Informational blog

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Central Depository Services Limited (CDSL) share whose price was Rs. 2006.20 yesterday i.e. on 27-June-2024 and which closed at Rs. 2387.25 today on 28-June-2024, up by 381.05. Which closed with a gain of about 20% in a day!

You can also Read: What Is the Stock Market?

What was the reason for increasing the share price so much in a day?

The main reason for the share price increasing so much in a day is that today the directors of the company said in an exchange filing, that the meeting of the Board of Directors of the company is scheduled to be held on Tuesday, July 02, 2024, in which, among other things, the proposal to issue bonus shares will be considered, and said that whether to give BONUS and how much to give will depend on the approval of the shareholders of the company. This announcement of discussion on BONUS share spread in the market and people rushed to buy CDSL shares which caused this huge rally in CDSL share price on June 28th, 2024.

CDSL is - Central Depository Services Limited (CDSL)

Is this a good time to buy CDSL shares?

The answer is NO! The reason is that The CDSL share turned Bulish which is caused by the discussion on the announcement of the BONUS share and there is no change in Fundamentals of this company. Also, you need to see the P/E ratio of CDSL which is high as compared to the sector P/E ratio.

Should you Buy, Sell, or Hold CDSL stock?

Well, I think I am not the right person to advise you on this because I am not running any SEBI-registered advisory firm. But if I had shares, I would have sold 30-40% of my holding today and booked a profit.

CDSL share Fundamentals

Fundamentally this share is in a strong position nowadays in July 2024 but the P/E ratio of CDSL is higher than the sector P/E ratio.

CDSL shares Technical analysis

When we see technically, this share is moving far above its moving average and it will fall soon in a day of 2 trading days i.e. Monday or Tuesday.

CDSL share price BSE

CDSL stock is not available for trading on BSE. ICICI Direct, Zerodha, INDMoney.

CDSL share price NSE

Date 28-JUN-2024: Rs. 2387.25 (+381.05) +18.99% in one day.

Is CDSL a good stock to Buy?

Yes, because the Company's Balance sheet, Management, and Fundamentals are good. Good for investors who believe in holding stocks.

CDSL share price target 2025

I am an investor who trusts a company having strong Fundamentals and CDSL has good Fundamentals. But predicting and publishing the target price publically is not good which most people are doing on the internet. Analyzing any stock Fundamentally and Technically can give you indications only. You can invest in any company whose production, profit, and turnover are increasing every year and liabilities are decreasing. We can discuss more in the comment section below about any stock if you have any queries.


CDSL share price history

  • 6 months return:- 30%+
  • 1-year return:- More than 110%
  • 5 years return:- almost 1000% which is 10x. Rs. 10,000 would become Rs. 1,00,000 in the past 5 years if invested 5 years back.

Conclusion

   Now the time is changed, people Buy when there is a meeting scheduled for discussion on giving Bonuses to shareholders and they will book profit by selling stocks even a few days back from the record date. This is the main reason Shareholders are not getting profit from bonus shares who are holding stocks for a long time. So going further we as an investor can do one thing. We can buy more shares i.e. 30% of our holdings and sell them near the record date for Bonus shares. Example: If you have 100 shares of CDSL, buy somewhere around 30 more shares whenever there is news on discussion and book profit by selling those 30% shares near the record date of Bonus. Remember, not to use this trick on Rumors.
If you have any queries, you can comment below.

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