CDSL’s IPO jackpot comes with a valuation catch. Jefferies sets Rs 1,315 target
10 September 2026 Updated 10 September 2026Source: Economic Times 1 min read
Quick Summary
Jefferies maintains a Hold rating on CDSL and sets a target price of Rs 1,315, which is about 7% below the current level of Rs 1,414.90. The firm expects earnings to benefit 3‑4% from a revived IPO franchise and forecasts EPS to rise around 19% annually over the next two years.
Key Takeaways
- Jefferies retains a Hold rating on CDSL.
- Target price set at Rs 1,315, implying ~7% downside from Rs 1,414.90.
- IPO revival could boost earnings by 3–4%.
- EPS projected to grow 19% CAGR over two years, driven by new demat accounts, IPO income and margin expansion.
Why It Matters
A lower target price suggests that the stock may be overvalued at current levels, and the projected earnings boost from IPO activity highlights a key growth driver for CDSL. Retail investors should be aware of how valuation gaps and earnings outlook can affect the risk‑return profile of the stock.
Summary, takeaways and analysis above are written by CAPITA1's AI from the source report. For educational purposes only. Not investment advice.
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