1797.5000 3.50 (0.20%)
NSE Jul 01, 2025 15:31 PM
Volume: 3.6M
 

1797.50
0.20%
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.
Number of MF schemes decreased from 33 to 27 in Mar 2025 qtr
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