We assign a P/E multiple of 33x to core earnings and add net cash to arrive at a TP of Rs 415 (40% upside from CMP). At 25/21x FY19/20E earnings we see value and maintain our BUY rating. CDSL posted a muted 4QFY18 with flat revenue and lower margins. Revenue was up 0.8% QoQ to Rs 518mn (in-line with our est of Rs 518mn). Growth was led by 5.8/7.7% QoQ growth in Annual issuer charges/online data charges (KYC) offset by 3.5/2.8% fall in transaction revenue/IPO & corporate action charges respectively.