In FY18, CDSL reported a strong growth in consolidated net sales of 31% YoY, driven by high growth in IPO/corporate action charges, transaction charges and KYC segment. Consolidated PAT came in at INR 1bn (+20% YoY), in-line with our estimates. Fixed cost model driven primarily by staff and IT costs enables the company to register strong margins in tandem with revenue growth. High FCF generation (FCF yield c.4%+), stable dividend policy (35% payout) and a strong balance sheet (net cash INR 5.5bn+) provide further support. SEBI panel's likely recommendation to allow new entrants in depository space may increase the competition intensity. We forecast a c.20% EPS CAGR over FY18-FY20E and...