Central Depository Services (India) Ltd. share price target

We assign a P/E multiple of 33x to core earnings and add net cash to arrive at a TP of Rs 425 (47% upside from CMP). At 24/21x FY19/20E earnings, value is imminent and merits a BUY. Central Depository Services Ltd (CDSL) is one of two depositories in India and the only one to be listed. Given the high risk of data pilferage, we believe there is limited scope for any other depository to be set up. CDSL is a gem of a business that any investor constructive on India in the long term must own. It has a robust business model, with (1) One-third of revenues being annuity (issuer charges), (2) Embedded non-linearity playing out (1,502 bps margin expansion over FY13-17), (3) Low capex requirement (~3% of revenue), (4) Excellent cash generation (OCF ~63% of EBITDA) and (5) Huge option value from new areas like digitisation of academic records and insurance policies, e-warehouse receipts and GST Suvidha centres.

Processing surged by a robust 58.1% YoY to Rs109mn. This impressive performance on revenue front can be attributed to good health of capital markets, with the key indices hitting all-time highs, robust primary market with new issuers coming in at a rapid rate and strong number of new demat account openings. Notably, its EBITDA margin expanded by a whopping 785bps YoY to 61.1%, which in absolute terms grew by 56.2% YoY to Rs312mn owing to operating leverage and effective cost control measures. However, its reported PAT rose at a slower pace than...

Central Depository Services (CDSL) has reported a strong set of operational numbers in 2QFY18. Its revenue rose by a healthy 22.4% YoY to Rs472mn led by 18.2% YoY growth in Depository segment. On the other hand, Data Processing revenue rose by a strong 35.2% YoY. The strong revenue growth was aided by good health of capital markets with the key indices hitting all-time highs and strong new MF account openings. Key growth drivers in terms of businesses were Transaction charges (+26% YoY), IPO/Corporate Action charges (+68% YoY) and KYC/Online Data Charges (+41% YoY). Owing to operating leverage and cost control, CDSL's EBITDA margin powered ahead by 221bps YoY to 63.5%, and by 26.8% YoY in absolute terms to Rs300mn....

Central Depository Services (India) Ltd. (CDSL) is a leading securities depository in India by incremental growth of Beneficial Owner (BO) accounts over the last three years and by the total number of registered Depository Participants (DPs), as at the end of FY16. However, in...

We initiate with buy for a price target of Rs 292 (FY20 target P/E) representing an upside potential of 96% (from the upper price band of 149) over the next 21 months.

IPO Note - Central Depository Services (India) Ltd Issue Open: June 19 - June 21 2017, Price Band: Rs. 145 - 149

number of demat account with NSDL and CDSL grew at a 5% and 9% CAGR, respectively, over FY11-17. We are of the opinion that with aggressive marketing drive and investor awareness programs,...

Incorporated in 1999, Central Depository Services (India) Limited (CDSL) is a subsidiary of BSE which operates as a securities depository in India. As on April 2017, it has 589 DPs, servicing across 29 states and 7 union territories. The number of service centres grew at CAGR of 21.4% from 11,877 in FY15 to 17,489 in FY17 and beneficial owner (BO) accounts grew at a CAGR of 13% from 9.6mn in FY15 to 12.3mn in FY17. The company is coming out with an IPO which is 100% offer for sale. BSE is selling its stake to meet the...

Object of the Issue: Offer for Sale: To achieve the benefits of listing the Equity Shares on the Stock Exchanges and for the sale of up to 35,167,208 Equity Shares by the Selling Shareholders. Business Overview: Central Depository Services (India) Ltd (CDSL) is the Leading Securities Depository in India by incremental growth of Beneficial Owner (BO) accounts over the last 3 Fiscals and by the total number of registered Depository Participants (DPs), as at the end of FY16, according to the CRISIL Report. It is a subsidiary of BSE Limited....