90% return in 1 year: CDSL is Anil Singhvi's Wealth Creation Pick - Check share price target

CDSL Share Price Target, Wealth Creation Pick by Anil Singhvi: Benchmark equity indices Sensex and Nifty ended the last day of trade of the 2023-24 fiscal on a bullish note on Thursday. Extending its previous day's rally, the 30-share index jumped 655.04 points or 0.90 per cent to settle at 73,651.35. During the day, it zoomed 1,194 points or 1.63 per cent to 74,190.31. The NSE Nifty climbed 203.25 points or 0.92 per cent to end at 22,326.90. 

Wealth Creation Pick by Anil Singhvi

Zee Business Managing Editor Anil Singhvi has picked CDSL as his Wealth Creation Pick. He said the stock has strong fundamentals and can give strong returns in the long term. In the last one year, it has given a good return of about 90 per cent.

Market guru Anil Singhvi said there is a continuous increase in the number of demat accounts and it has increased by 80 per cent yearly. The number of Demat accounts under CDSL is around 10.5 crores. 

"We have seen good growth in issuers fees and it has increased by 10 per cent in the first two months of this year. Also, the IPO market is strong. 23 IPOs have already been listed on the mainboard in this calendar year. Making demat mandatory is a big trigger for private companies. FIIs are continuously increasing their stake, currently the stake is 18.25 per cent," Singhvi said.

CDSL Share Price Target By Anil Singhvi

Anil Singhvi said that the growth outlook of the company looks strong. 

"Strong growth is expected in the next 3 years. In the last 5 years, CDSL's profit has increased by 22 per cent and income by 24 per cent. Income is expected to grow at the rate of 25 per cent and profit at the rate of 27 per cent in the coming 3 years. The stock is not too expensive and is giving a good investment opportunity.

Anil Singhvi said that one should keep the stock in his portfolio for 1-3 years. 

"One should do SIP in it every 10 per cent fall. There are three targets - Rs 2,000, Rs 2,400 and Rs 2,800," he said.