Central Depository Services (India) Ltd. News and Updates

Name: Latest research reports of Central Depository Services (India) Ltd. authored by HDFC Securities and published by - Trendlyne research reports.
Item: Central Depository Services (India) Ltd.
Rating: 5
Author: HDFC Securities

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Central Depository Services (India) Ltd.

23 Oct 2019

1549.40

-0.27%

CDSL (2QFY20): Good business, rough weather. Maintain BUY

Buy: Central Depository Service...

Target

HDFC Securities

CDSL has a diversified revenue stream, ~36% of the revenue is annuity in nature and ~42% is market-linked (Transaction, IPO/corporate action and KYC). The big opportunity related to demat of ~60K unlisted public companies is unfolding. At current run-rate, it will contribute ~7% to FY20 growth with negligible incremental cost. Transactions charges/KYC revenue will revive with better retail participation and improved market sentiments. New revenue streams like National Academic Depository (NAD) and e-warehouse receipts are future growth drivers. We have moderated our estimates for FY20/21E and now expect revenue/EBIT/PAT to grow at a CAGR of 12/5/6% over FY19-22E. We like CDSL based on its (1) Annuity revenue stream, (2) Cash-rich balance sheet (Net cash of Rs 6.50bn, ~30% of Mcap), (3) Option value and (4) Unlisted opportunity. Risks include regulatory changes, market slowdown and increase in competition. We maintain BUY on CDSL despite revenue and margin miss in 2QFY20. Annual issuer charges (+21% YoY in 6M) is driving growth led by the unlisted opportunity. We value CDSL on SoTP basis by assigning 30x to Sep-21 core profit and adding net cash to arrive at a TP of Rs 286.

Number of FII/FPI investors increased from 304 to 313 in Jun 2025 qtr.

Central Depository Services (India) Ltd.

23 Oct 2019

1549.40

-0.27%

CDSL -2QFY20 Result Update

Buy: Central Depository Service...

Reliance Securities

Central Depository Services (CDSL) reported disappointing revenue in 2QFY20, which saw a steep 9.8% QoQ decline, while revenue dipped 1.9% YoY. 2QFY20 revenue came in at Rs527mn, with Depository Services revenue flattish QoQ at Rs406mn (-1% YoY), while the Data Processing segment clocked a steep 23.8% QoQ revenue decline (3.3% YoY growth). CDSL's net beneficial owner (BO) accounts touched 18.7mn (17.9mn in 1QFY20), implying 74% incremental market share. Slow revenue growth was mainly on account of decline in Transaction Charges (-10.7% YoY), IPO/Corporate Action Charges (-21.1% YoY) and KYC/Online Data Charges (-20.3% YoY), even as Annual Issuer Charges revenue grew by a healthy 20.1% YoY aided by income earned...

Number of FII/FPI investors increased from 304 to 313 in Jun 2025 qtr.

Central Depository Services (India) Ltd.

18 Oct 2019

1549.40

-0.27%

CENTRAL DEPOSITARY SERVICES LIMITED

Buy: Central Depository Service...

Joindre Capital Services

Central Depository Services (CDSL) was set up in 1999, is the leading depository in India in terms of incremental market share, garnering 63% share of incremental demat accounts in FY19. CDSL offers dematerialisation for equity and preference shares, MF units, debt instruments and G-Secs. It also offers corporates facilities to credit securities to BO demat accounts in order to effect corporate actions. CDSL also offer other online services such as e-voting, e-Locker, National Academy Depository, easi (Electronic Access to Security Information), easiest (Electronic Access to Security Information and Execution of Secured Transaction) drafting and preparation of wills for succession...

Central Depository Services (India) Ltd. has gained 44.67% in the last 6 Months

Central Depository Services (India) Ltd.

14 Oct 2019

1549.40

-0.27%

CDSL and Uniken collaborate on security solution for mobile applications

Economic Times

The security solution will enhance multi-factor authentication based on 1:1 cryptographic keys with device fingerprinting, among other things.

Central Depository Services (India) Ltd. has gained 44.67% in the last 6 Months

Central Depository Services (India) Ltd.

30 Jul 2019

1549.40

-0.27%

CDSL (1QFY20): Navigating uncertainties. Maintain BUY

Buy: Central Depository Service...

Target

HDFC Securities

CDSL has a diversified revenue stream, ~33% of the revenue is annuity and ~40% is market-linked (and uncertain). Huge opportunity for demat of ~60K unlisted public companies is now bearing fruits. At current run-rate, it will contribute ~7% to growth with negligible incremental cost. Transactions charges/KYC revenue will revive with better market conditions. New revenue streams like National Academic Depository (NAD) and e-warehouse receipts will start contributing only from 2HFY20E. We like CDSL based its (1) Annuity revenue stream, (2) Cash-rich balance sheet (Net cash of Rs 6.50bn, ~32% of Mcap), (3) Option value and (4) Unlisted opportunity. We expect CDSL revenue/EBITDA/PAT to grow at a CAGR of 14/11/8% over FY19-21E. Risks include regulatory changes, market slowdown and increase in competition. We maintain BUY on CDSL post higher revenues but lower margins in 1QFY20. Annuity revenue (+23% YoY) is driving growth led by the unlisted opportunity. Our SoTP of Rs 320 is based on 30x core FY21 earnings plus net cash.

Central Depository Services (India) Ltd. is trading above its 200 day SMA of 1501.8

Central Depository Services (India) Ltd.

30 Jul 2019

1549.40

-0.27%

CDSL - 1QFY20 Result Update

Buy: Central Depository Service...

Target

Reliance Securities

Revenue Impresses; Profitability Down Steeply On Wage Hikes Central Depository Services (CDSL) reported a robustly improved revenue performance in 1QFY20, for the second successive quarter after a poor show in 3QFY19, when revenues dipped steeply by >10% YoY and >13% QoQ. In 1QFY20, revenue rose strongly by 28.2% YoY and by 14.6% QoQ to Rs584mn, its highest-ever quarterly revenue. Depository Services revenue saw a healthy recovery after two successive quarters of YoY decline, with segment revenue up 11.4% YoY to Rs405mn. On the other hand, the Data Processing segment clocked a substantial 86.6% YoY revenue growth. CDSL's net beneficial owner (BO) accounts touched 17.9mn (17.3mn in 4QFY19),...

Number of FII/FPI investors increased from 304 to 313 in Jun 2025 qtr.

Central Depository Services (India) Ltd.

23 Jul 2019

1549.40

-0.27%

Brokers worry over restrictions on off-market deals by CDSL, NSDL

Business Line

Have CDSL and NSDL, both share market depository participants (DPs) that hold client demat accounts, put restrictions on off-market transactions? Shar

Number of FII/FPI investors increased from 304 to 313 in Jun 2025 qtr.

Central Depository Services (India) Ltd.

09 May 2019

1549.40

-0.27%

CDSL (4QFY19): Recovery imminent. Maintain BUY

Buy: Central Depository Service...

Target

HDFC Securities

CDSL has a diversified revenue stream, ~35% of the revenue is of annuity nature and ~47% is market linked (Transaction, IPO/corporate action and KYC). Big opportunity is emerging with the demat of ~60K unlisted public companies. The opportunity size is ~Rs 0.12bn per year (taking ~50% share) with negligible incremental cost. CVL KYC issues are behind and growth with resume with revised e-KYC regulations. New revenue streams like National Academic Depository (NAD) and e-warehouse receipts will start contributing meaningfully in 2HFY20E. We like CDSL based its (1) Annuity revenue stream, (2) Cash rich balance sheet (Net cash of Rs 6.53bn, ~28% of Mcap), (3) Option value and (4) Unlisted opportunity. We expect CDSL revenue/EBITDA/PAT to grow at a CAGR of 11/14/10% over FY19-21E. Risks include regulatory changes, market slowdown and increase in competition. We maintain BUY on CDSL based on better than expected 4QFY19. Annuity revenue stream is driving growth led by un-listed opportunity. We value CDSL on SoTP basis by assigned 30x multiple to core FY-21 earnings and adding net cash to arrive at a TP of Rs 335.