Central Depository Services (India) Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for CDSL, Central Depository Services (India) Ltd.

Central Depository Services (India) Ltd.

28 Oct 2020

1688.70

-3.35%

CDSL - Company Update - Solidifying its position

Buy: Central Depository Service...

Target

Monarch Networth Capital Limited

We retain BUY on Central Depository Services Ltd (CDSL) with target price revised upwards to Rs560. In our IC note (https://bit.ly/3jAh1O7), we had highlighted CDSL as a play on the revival in capital market activities (as also evident from the test of significance study and stock ). On a systemic-basis, Beneficiary account (BO) addition coupled with delivery-based volumes has been on the rise. This in addition to surge in fund-raising activity by corporates and a steady rise in avenues for annual issuer charges bodes well for CDSL. This was also got reflected in its recent results that saw was a sturdy 69% YoY rise in revenues / 68% YoY rise in PAT. Empirical...

Institutional Investors have decreased holdings from 36.26% to 26.74% in Mar 2025 qtr

Central Depository Services (India) Ltd.

01 Sep 2020

1688.70

-3.35%

Central Depository Services Ltd (CDSL)

Buy: Central Depository Service...

Monarch Networth Capital Limited

We initiate coverage on Central Depository Services Ltd (CDSL) with BUY and Target price (TP) of Rs525. This thinly covered stock sports a well-diversified revenue mix, impressive margins, and correspondingly healthy returns. The asset-light model, duopoly play on the secular increase in stockholder accounts coupled with potential market share gains is an added positive. While this itself is a successful recipe for growth, the icing on the cake could be the massive unexploited revenue opportunities in CDSL's core activities, and leveraging its customer base and data for new businesses, a feat adroitly accomplished by similar sectors such as credit rating agencies (not to...

Number of MF schemes decreased from 33 to 27 in Mar 2025 qtr

Central Depository Services (India) Ltd.

12 Aug 2020, 12:00AM

1688.70

-3.35%

CENTRAL DEPOSITORY SERVICES LTD

Buy: Central Depository Service...

Ventura

Asset light CDSL (Central Depository Services Ltd) is a proxy play on the financial services economy. As part of a duopoly, CDSL has done well to emerge as a leader (market share of ~54% in terms of investor accounts) in the Depository DP segment while it lags (market share of ~33%) its competitor NSDL in the corporate issuers segment.

Central Depository Services (India) Ltd.'s price crossed below 30Day SMA today

Central Depository Services (India) Ltd.

30 Jan 2020

1688.70

-3.35%

CDSL (3QFY20): Gaining traction. Maintain BUY

Buy: Central Depository Service...

Target

HDFC Securities

CDSL has a diversified revenue stream, ~35% of the revenue is annuity in nature and ~42% is market linked (Transaction, IPO/corporate action and KYC). The opportunity related to demat of ~60K unlisted public companies is unfolding and hike in Annual issuer charges is also due in FY21E. Transactions charges/KYC revenue will revive with retail participation and improved market sentiments. New revenue streams like NAD and e-warehouse receipts are future growth drivers. We expect revenue/EBIT/PAT to grow at a CAGR of 13/10/10% over FY19-22E. Net cash stands at Rs 6.50bn (~23% of Mcap) and the company trades at a P/E of 22/19x FY21/22E earnings. Risks include regulatory changes, market slowdown and increase in competition. We maintain BUY on CDSL based on inline revenue and better margin performance in 3QFY20. Growth in Annual issuer charges and revival of transaction revenue is driving growth. Regulatory tailwinds like hike in Issuer charges and compulsory demat of unlisted companies and Insurance policies will provide further boost to growth. We value CDSL on SoTP basis by assigning 30x to Dec-21 core profit and adding net cash to arrive at a TP of Rs 325.

Number of FII/FPI investors decreased from 351 to 304 in Mar 2025 qtr

Central Depository Services (India) Ltd.

23 Oct 2019

1688.70

-3.35%

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 MF schemes decreased from 33 to 27 in Mar 2025 qtr

Central Depository Services (India) Ltd.

23 Oct 2019

1688.70

-3.35%

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 MF schemes decreased from 33 to 27 in Mar 2025 qtr

Central Depository Services (India) Ltd.

18 Oct 2019

1688.70

-3.35%

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...

Institutional Investors have decreased holdings from 36.26% to 26.74% in Mar 2025 qtr

Central Depository Services (India) Ltd.

30 Jul 2019

1688.70

-3.35%

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.

Number of FII/FPI investors decreased from 351 to 304 in Mar 2025 qtr

Central Depository Services (India) Ltd.

30 Jul 2019

1688.70

-3.35%

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),...

Central Depository Services (India) Ltd. is trading below its 30 day SMA of 1734.6

Central Depository Services (India) Ltd.

09 May 2019

1688.70

-3.35%

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.

Central Depository Services (India) Ltd. is trading below its 30 day SMA of 1734.6

Is Central Depository Services (India) Ltd. worth buying?

1401 Votes:

Buy 80.44%

Sell 10.21%

Hold 9.35%

RESEARCH REPORTS

Neutral SEE REPORTS >

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Neutral SEE REPORTS >

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