India’s IPO revival is adding fuel to Central Depository Services’ growth story but Jefferies says investors may already have paid for much of the upside. The brokerage retained a Hold rating on CDSL and set a price target of ₹1,315, below the stock’s previous close of ₹1,414.90. The target implies a potential downside of 7%.
The caution comes even as a strong IPO pipeline is expected to add 3%-4% to CDSL’s earnings. Jefferies estimates the company’s earnings per share will grow at a compound annual rate of 19% over the next two years, supported by new demat accounts, IPO-related income and improving margins.
