The Indian stock market is a dynamic arena, offering investors opportunities to grow wealth through strategic investments. Two standout players, Bombay Stock Exchange (BSE) and Central Depository Services Limited (CDSL), have consistently drawn attention for their robust performance and promising prospects. This comprehensive guide dives into the latest updates on BSE and CDSL stocks, including their recent market performance, dividend announcements, upcoming Annual General Meetings (AGMs), and the broader market factors influencing their trajectories. Whether you’re a seasoned investor or a newcomer, this article equips you with actionable insights to navigate these multibagger stocks in 2025.
Why BSE and CDSL Are Investor Favorites
BSE and CDSL have carved a niche in India’s financial ecosystem. BSE, the second-largest stock exchange after the National Stock Exchange (NSE), facilitates seamless trading and market operations. CDSL, on the other hand, plays a critical role in safeguarding dematerialized (demat) shares, ensuring secure and efficient transactions for investors. Both companies have delivered exceptional returns over the years, with BSE emerging as a multibagger stock and CDSL maintaining a strong dividend track record. Let’s explore their recent performance, key updates, and what lies ahead.
BSE: A Multibagger Powerhouse
The Bombay Stock Exchange has been a beacon of growth, delivering multibagger returns over the past four years. Despite a recent dip in its stock price, BSE’s fundamentals remain strong, making it a compelling choice for long-term investors.
Recent Market Performance
As of July 2025, BSE stock trades at approximately ₹2,390, reflecting a 3.08% decline or a 76-point drop in a single session. This dip aligns with broader market corrections, but BSE’s historical performance tells a different story. Over the past year, the stock hit an all-time high of ₹3,330, with a remarkable journey from a low of ₹74 to its current levels. During the COVID-19 period, BSE stock was priced at a mere ₹51, underscoring its multibagger status as it soared to ₹3,000—a staggering growth trajectory.
The recent decline stems from profit booking after a sharp rally, with the stock’s three-month low at ₹1,860. Despite short-term volatility, BSE’s long-term outlook remains optimistic, driven by its robust financials and market position.
Financial Health and Growth Metrics
BSE’s financial performance is a testament to its resilience and growth potential. The company is nearly debt-free, a significant advantage in a volatile market. Its five-year Compound Annual Growth Rate (CAGR) stands at an impressive 64.1%, reflecting consistent growth. Key financial highlights from the latest quarters include:
- Revenue Growth: Sales increased from ₹671 crore in June 2024 to ₹977 crore in March 2025, showcasing robust top-line growth.
- Operating Profit Surge: Operating profit rose from ₹347 crore in June 2024 to ₹555 crore in March 2025, indicating strong operational efficiency.
- Net Profit Doubling: Net profit jumped from ₹264 crore in June 2024 to ₹494 crore in March 2025, nearly doubling in a year.
- Earnings Per Share (EPS): EPS grew from ₹6.53 in June 2024 to ₹12.17 in March 2025, signaling enhanced profitability.
Over a 10-year horizon, BSE’s sales growth averaged 19%, escalating to 40% over five years and 56% over three years. The trailing twelve-month (TTM) sales growth reached an astonishing 102%. Profit growth followed a similar trajectory, with a 10-year average of 21%, rising to 64% over five years and 69% over three years, with TTM profit growth at 189%. These figures underscore BSE’s ability to deliver consistent value to shareholders.
Dividend Payout and Investor Confidence
BSE is known for its healthy dividend payout ratio of 41.1%, rewarding shareholders consistently. This commitment to dividends, coupled with strong financial performance, has bolstered investor confidence. Foreign Institutional Investors (FIIs) increased their stake from 13.01% in September 2024 to 16.78% in March 2025, while Domestic Institutional Investors (DIIs) raised their holding from 11.68% to 12.33% over the same period. Conversely, the general public’s shareholding decreased from 52.40% to 48.78%, indicating that institutional investors are actively accumulating BSE shares.
Mutual Fund Activity
In June 2025, 43 mutual funds invested in BSE, reflecting strong institutional interest. However, 51 mutual funds also exited, likely due to profit booking after the stock’s rapid ascent. This mixed activity highlights the stock’s volatility but also its appeal to savvy investors seeking growth opportunities.
CDSL: The Dividend Dynamo
CDSL, the leading depository for demat shares in India, has solidified its position as a reliable wealth creator. With a consistent dividend track record and a strong market presence, CDSL remains a top pick for investors seeking stability and growth.
Recent Market Performance
CDSL’s stock price stands at ₹1,705 as of July 2025, with a 2.41% decline in a recent trading session. Despite this dip, the stock remains resilient, supported by positive developments such as its upcoming AGM and dividend announcements.
AGM and Dividend Announcements
CDSL has scheduled its 27th Annual General Meeting for August 14, 2025, at 11:00 AM. The meeting will be conducted via video conferencing, allowing shareholders to engage with the company’s leadership and discuss its performance and future plans. A key highlight is the proposed final dividend for FY 2024-25 of ₹12.5 per share (face value ₹10), subject to shareholder approval at the AGM. The record date for this dividend is set for August 7, 2025, offering investors an attractive opportunity to benefit from CDSL’s consistent dividend policy.
Since August 2018, CDSL has distributed dividends eight times, totaling ₹22 per share in the past 12 months, including a ₹19 final dividend and a ₹3 special dividend in 2024. This track record underscores CDSL’s commitment to rewarding shareholders.
Financial Performance and Market Position
CDSL’s financials reflect its operational strength and market dominance. The company benefits from a near-monopoly in the depository services segment, with a significant market share compared to its competitor, National Securities Depository Limited (NSDL). Mutual fund activity in June 2025 showed 27 funds entering CDSL, while 11 exited, indicating strong buying interest. These metrics highlight CDSL’s appeal as a stable, high-growth stock.
Competitive Landscape
While NSDL is poised to enter the market as a competitor, CDSL’s established position and robust business model provide a competitive edge. The company’s role in safeguarding demat accounts ensures a steady revenue stream, making it a resilient investment option in a dynamic market.
Market Factors Influencing BSE and CDSL
Both BSE and CDSL operate in a market influenced by global and domestic factors. Understanding these dynamics is crucial for investors looking to capitalize on these stocks.
Global Economic Uncertainties
Recent market corrections can be attributed to three key factors:
- TCS Results Impact: Tata Consultancy Services (TCS) reported weaker-than-expected results for Q1 FY 2025-26, with a 3.1% revenue decline despite a 6% increase in net profit margin to ₹12,700 crore. Global uncertainties have led clients to delay technology spending, prompting brokerage firms to lower earnings estimates for 2026. This has contributed to a broader market downturn, affecting stocks like BSE and CDSL.
- Trump’s Tariff Plans: Former U.S. President Donald Trump’s announcement of a 35% tariff on Canadian goods, effective next month, and potential 15-20% tariffs on other trading partners have raised fears of a trade war. This has shaken investor confidence, leading to declines in major indices like the NASDAQ and S&P 500, with ripple effects on Indian markets.
- Oil Price Volatility: Speculation about potential U.S. sanctions on Russian oil has driven crude oil prices higher, with Brent crude reaching $68.83 per barrel and WTI crude at $66.81. While OPEC production increases have tempered price surges, supply concerns continue to create market uncertainty.
Domestic Market Dynamics
In India, mutual fund inflows into BSE and CDSL reflect strong domestic interest. However, profit booking has led to short-term volatility, as seen in the recent exits by some mutual funds. The broader market sentiment remains cautious due to global headwinds, but the long-term outlook for both companies is positive, driven by their strong fundamentals and strategic importance in India’s financial ecosystem.
Investment Strategies for BSE and CDSL in 2025
Investing in BSE and CDSL requires a strategic approach, balancing short-term volatility with long-term growth potential. Here are key considerations:
Long-Term Investment Potential
Both BSE and CDSL have demonstrated exceptional growth over the years, making them ideal for long-term investors. BSE’s multibagger status and CDSL’s consistent dividends offer a blend of capital appreciation and income generation. Investors should focus on:
- BSE’s Growth Trajectory: With a nearly debt-free balance sheet and strong revenue and profit growth, BSE is well-positioned to capitalize on India’s expanding financial markets.
- CDSL’s Dividend Appeal: CDSL’s reliable dividend payouts and dominant market position make it a stable choice for income-focused investors.
Navigating Short-Term Volatility
Recent market corrections highlight the importance of timing and risk management. Investors should:
- Monitor Market Trends: Stay informed about global and domestic factors, such as U.S. tariff policies and oil price movements, that could impact stock prices.
- Diversify Portfolios: Combine investments in BSE and CDSL with other sectors to mitigate risks associated with market volatility.
- Consult Financial Advisors: Before investing, seek advice from financial experts to align your strategy with your risk tolerance and financial goals.
Leveraging Dividend Opportunities
CDSL’s upcoming dividend record date on August 7, 2025, presents a timely opportunity for investors. By holding shares before the record date, investors can secure the ₹12.5 per share dividend, enhancing their overall returns.
Future Outlook for BSE and CDSL
The future looks promising for both BSE and CDSL, driven by their strong fundamentals and strategic roles in India’s financial markets.
BSE: Poised for Continued Growth
BSE’s robust financial performance, institutional backing, and debt-free status position it for sustained growth. As India’s capital markets expand, BSE is likely to benefit from increased trading volumes and new product offerings. Investors should watch for upcoming quarterly results, which are expected to reflect continued strength.
CDSL: A Stable Wealth Creator
CDSL’s dominance in the depository services segment, coupled with its consistent dividend policy, makes it a reliable choice for investors. The upcoming AGM on August 14, 2025, will provide further insights into the company’s strategic plans, including potential expansions and technological advancements.
Conclusion: Seizing Opportunities in 2025
BSE and CDSL stand out as compelling investment opportunities in 2025, offering a blend of growth, stability, and income. While short-term market volatility may create fluctuations, their strong fundamentals and strategic importance ensure long-term value creation. By staying informed, diversifying portfolios, and leveraging dividend opportunities, investors can unlock significant wealth with these multibagger stocks.
Disclaimer: Investing in stocks involves risks, and past performance is not indicative of future results. Always conduct thorough research or consult a financial advisor before making investment decisions.
