Central Depository Services (India) (NSE:CDSL) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Central Depository Services (India) had a gross margin of 68.30% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Central Depository Services (India) Gross Margin % Related Terms
Central Depository Services (India) Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Central Depository Services (India) Gross Margin % Chart
NSE:CDSL vs MS, GS, SCHW: Gross Margin % Comparison
For the Capital Markets subindustry, Central Depository Services (India)'s Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Central Depository Services (India) Gross Margin % vs Capital Markets Industry
For the Capital Markets industry and Financial Services sector, Central Depository Services (India)'s Gross Margin % distribution charts can be found below:
* The bar in red indicates where Central Depository Services (India)'s Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Central Depository Services (India) (NSE:CDSL) has a Gross Margin % of 68.30% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Central Depository Services (India) and its competitors. This is 12% below median its historical median of 77.28. Over the past decade, Central Depository Services (India)'s Gross Margin % has ranged from 67.66 to 81.55. According to the industry distribution chart, Central Depository Services (India) ranks #161 out of 620 companies in the Capital Markets industry, placing it in the top 26%.
Is Central Depository Services (India)'s Gross Margin % too high?
Central Depository Services (India)'s current Gross Margin % of 68.30% is 12% below median its 10-year median of 77.28. Over the past 10 years, this metric has ranged from a low of 67.66 to a high of 81.55. The Capital Markets industry median Gross Margin % is 49.63. Central Depository Services (India)'s value of 68.30% is 37.6% above this industry median. Based on the distribution chart, Central Depository Services (India) ranks #161 out of 620 companies in the Capital Markets industry, which is above the industry midpoint. Overall, Central Depository Services (India) has a GF Score™ of 97/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Central Depository Services (India)'s Gross Margin % compare to MS and GS?
According to the Capital Markets industry distribution chart, Central Depository Services (India) ranks #161 out of 620 companies for Gross Margin %. This puts Central Depository Services (India) in the upper half of its industry. The industry median Gross Margin % is 49.63. Central Depository Services (India)'s value of 68.30% is 37.6% above this benchmark. Historically, Central Depository Services (India)'s own Gross Margin % has ranged from 67.66 to 81.55 over the past decade. While the company's 10-year median is 77.28 vs. the industry median of 49.63, Central Depository Services (India) has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Capital Markets company?
The median Gross Margin % among Capital Markets companies is 49.63, based on 620 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Central Depository Services (India)'s current Gross Margin % of 68.30% is 37.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Central Depository Services (India) and its competitors. For the Capital Markets industry, the median Gross Margin % is 49.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Central Depository Services (India)'s current Gross Margin % is 68.30%, which is 12% below median its own 10-year median of 77.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Central Depository Services (India) stock overvalued right now?
Based on GuruFocus' analysis, Central Depository Services (India) (NSE:CDSL) is currently considered Modestly Undervalued. The stock's GF Value™ is ₹1,633.58, compared to a current price of ₹1,350.60 — trading 17.3% below its estimated fair value. The current Gross Margin % is 68.30%, which is 12% below median its 10-year median of 77.28 and 37.6% above the Capital Markets industry median of 49.63. Central Depository Services (India)'s overall GF Score™ is 97/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Central Depository Services (India) (NSE:CDSL), the current Gross Margin % is 68.30% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Central Depository Services (India) (NSE:CDSL) Overvalued in 2026?
Based on GuruFocus' analysis, Central Depository Services (India) stock appears to be undervalued.
The current stock price of ₹1,350.60 is trading 17.3% below its estimated GF Value™ of ₹1,633.58.
GuruFocus considers Central Depository Services (India) to be Modestly Undervalued.
Key valuation signals for NSE:CDSL:
Gross Margin %: 68.30% (12% below median its 10-year median of 77.28)
GF Value™: ₹1,633.58 vs. price of ₹1,350.60 (17.3% below fair value)
Industry Position: 37.6% above the Capital Markets median (#161 of 620)
No single metric tells the full story. See the NSE:CDSL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Central Depository Services (India) Business Description
Central Depository Services (India) Ltd is a securities depository in India. It offers dematerialization for a wide range of securities, including equity shares, preference shares, mutual fund units, debt instruments, and government securities. In addition, it is involved in centralized record keeping of KYC documents of investors, and providing repository services to policyholders to store their receipts and policies in electronic form. The group operates in three segments: Depository, Data Entry, and Storage and Repository. A majority of its revenue is generated from the Depository segment, which provides various services to investors, including dematerialization, rematerialization, holding, transfer, and pledge of securities in electronic form, as well as e-voting services to companies.
97GF Score
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