New Delhi, Jan. 29 -- The Central Depository Services (India) Ltd (CDSL) stock has shed 29% in the past month. Significantly, the shares have fallen 16% since the company released its quarterly earnings report on 25 January, raising red flags among investors. Analysts said the stock's slide may be far from over, with more challenges looming on the horizon.

The CDSL stock, which opened at Rs.1,270 on Wednesday, trades at a price-to-earnings multiple of 48.28, significantly higher than its 10-year average of 36.46, Bloomberg data showed. Krishna Appala, senior research analyst at Capitalmind Research, said this indicates the stock may have more room to fall.

"A potential risk for CDSL lies in further valuation derating, coupled with a slo...