Shares of Central Depository Services (India) Limited (CDSL) jumped beyond 4% on Wednesday, clocking gains for the sixth straight session.

What Happened: The stock has raced over 10% in the past five sessions and soared 66% in the year so far. While the specific reason for the rally is not known, shares of the firm have been upbeat ever since the appointment of Nehal Vora as managing director and CEO.

Vora, who brings over 25 years of experience in the Indian Capital Markets, starts in his new position on Wednesday and will serve a term of five years till September 17, 2029.

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In August, the stock hit a 52-week high at ₹1,664.40, a day before the record date of its bonus issue. CDSL announced a 1:1 bonus issue, enabling investors to obtain one share for every share they hold in the company. The company had announced August 24 as the record date for the bonus issue.

Despite the run, analysts at ICICI Securities downgraded the stock's rating from "hold" to "reduce" but raised that price target to ₹1,320 from ₹1,128.

The brokerage firm pointed out that CDSL is currently trading at 59 times its one-year forward core earnings per share and 53 times its one-year forward earnings per share for FY26, nearly double the historical averages. The analysts indicated that the downgrade is based on peak cycle multiples and the potential for lower earnings growth observed in FY18-20 and FY23.

Price Action: CDSL shares gained 4.145 to trade at ₹1,516.60 on Wednesday morning.

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