CDSL Shares Tumble 17% in Three Days: Analysts Weigh In on Target Price, Key Support and Technical Signals
CDSL Shares Plunge: What’s Driving the Sell-Off?
If you’ve been tracking the markets, you probably noticed the sharp tumble in CDSL shares—down a solid 17% in just three trading sessions. For a stock that’s usually a steady performer in the depository space, that’s a gut punch for investors. So, what’s set off this sell-off, and where might the stock be headed next?
The latest plunge comes on the heels of a rough Q4 for FY25. CDSL reported a 19.3% sequential drop in revenue, landing at ₹224.4 crore. Net profit did even worse, slipping 23% year-over-year to ₹100 crore. The depository segment, which typically anchors CDSL’s earnings, saw an 18% fall compared to the last quarter. That’s a lot of red ink, and market participants didn’t take it lightly.
It’s not just the financials causing jitters. Technical indicators, particularly the 20-day moving average crossover (which happened on July 22, 2025), have a bit of a track record—historically, they’ve hinted at an average 2.74% drop over the following seven days. No wonder short-term traders and long-term holders alike are watching this play out with bated breath.
Support, Resistance, and What to Watch Next
The stock price as of July 25 sits at ₹1,614.70, shedding another 3.85% intraday. That’s well off its all-time high of ₹1,989.80, with the 52-week low parked at ₹1,047.45—a level some investors see as a safety net if the current slide continues. For now, the company’s valuation (with a market cap around ₹33,774 crore and a pricey PE ratio of 66.64) leaves little room for error.
There’s debate about where CDSL might go from here. Some analysts remain hopeful, pointing at a potential breakout target of ₹2,000 if the market recovers its faith. But those voices are balanced by real concerns about the company’s core operations. Demat account growth—a good pulse-check for this business—slumped hard, with net additions dropping 30% to just 64 lakh in Q4. With fewer people opening new accounts, the revenue pipeline looks a bit squeezed.
On top of that, cost controls are under the microscope. Investors and analysts are looking for signs that management can rein in expenses now that top-line growth is stalling out. Any updates or new moves here will be watched closely during the next couple of quarters.
A lot is riding on whether CDSL can turn the tide operationally. If demat account numbers rebound and fresh cost strategies kick in, the share price could find its footing. Until then, this remains a stock to watch cautiously—especially for those who don’t enjoy market rollercoasters.