Jefferies Cuts CDSL Price Target to ₹1,315 Despite IPO Earnings Growth
Brokerage firm Jefferies lowered its price target for Central Depository Services (CDSL) to ₹1,315 from the previous close of ₹1,414.90, flagging a 7% downside risk even as expected IPO activity drives projected earnings growth.
Jefferies maintains a Hold rating on Central Depository Services Limited (CDSL), setting a price target of ₹1,315 against the stock's closing price of ₹1,414.90. This target implies a potential downside of 7% despite positive earnings drivers. Jefferies estimates earnings per share will grow at a compound annual growth rate of 19% over the next two years due to new demat accounts and improved margins. The firm notes that IPOs have contributed roughly half of CDSL's operating revenue through corporate action fees and issuer charges. However, the analysis highlights a weakening link between IPO activity and total demat account additions over the past year. Demat additions rose to 3.3 million in August 2026, the highest level since February, supported by increased large offerings valued above ₹10,000 crore anticipated for September and November.
