Shares of Central Depository Services (CDSL) have made a remarkable leap, soaring over 8% on December 5, 2024, to hit an all-time high of Rs 1,865 per share. This surge not only marks a new peak for the company but also makes it the best-performing stock in the last eight weeks. On this day, around 1 crore shares exchanged hands on the BSE and NSE, significantly outpacing the average weekly trading volume of 47 lakh shares. The stock has doubled, or skyrocketed over 100% this year, far outperforming the Nifty 50's 12% increase in the same period.

This surge in CDSL's stock comes after the company's impressive financial performance in the second quarter of FY 2024-25. CDSL recorded a 49% year-on-year surge in net profit, reaching Rs 162 crore. Additionally, revenue from operations jumped by 55.5% YoY, totaling Rs 322 crore. These results are especially significant considering that CDSL's growth trajectory has been accelerated by its expansion in demat account registrations, with the company crossing a major milestone of 13.5 crore registered demat accounts as of September 30, 2024.

In just the second quarter of FY 2024-25 alone, CDSL added 1.18 crore new demat accounts, underscoring the strong demand for its services. As the largest depository in India by active demat accounts, CDSL has been integral in enabling investors to electronically deposit their securities, contributing to the growth of the Indian capital markets.

In terms of shareholding pattern, there have been notable movements in institutional investor holdings. Foreign Institutional Investors (FIIs) reduced their stake in CDSL to 13.7% from 14%, while mutual funds trimmed their holdings to 13.3% from 15.88%. Institutional investors also pared their stake to 35.33% from 38.92% in the September 2024 quarter. These changes reflect a broader market trend, where investors are increasingly focused on the company’s future growth prospects, despite the trimming of holdings by some institutional players.

Among the analysts covering CDSL, nine brokerages have offered insights on the stock. Two analysts have suggested a buy rating, while five analysts have a hold recommendation, and two have a sell rating. This mixed sentiment points to the optimism surrounding CDSL's strong performance, but also highlights a degree of caution in the market.

CDSL's ability to adapt to the changing demat account market and its focus on financial growth has led to its remarkable success in 2024. As investors continue to flock to the stock, the company's performance in the coming quarters will be crucial in sustaining this momentum.

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