Apr'25 View on Central Depository Services (India) Ltd

Central Depository Services Limited is a Market Infrastructure Institution (MII), part of the capital market structure, providing services to all market participants - exchanges, clearing corporations, depository participants (DPs), issuers and investors. It is a facilitator for holding of securities in the dematerialised form and an enabler for securities transactions. After touching a high of 2,000 the stock has fallen to 1200 levels but looks to reverse the fall and rise beyond 1,500 levels with following positive inputs • During the quarter, CDSL added 92 lakh new beneficiary accounts. • CDSL reported EBITDA of Rs161cr, up by 22.2% YoY. • We believe CDSL remains a play on capital market and is a big beneficiary of higher retail participation. • Central Depository Services (CDSL) performance was broadly in line with our estimates. • The company reported revenue of Rs278cr, up 29.7% YoY and down 13.7% QoQ. • CDSL’s PAT grew by 20.8% YoY and de-grew by 19.8% QoQ to Rs130cr. • Currently, the stock is trading at PE of 42.0x FY27E EPS. • Given recent correction in stock, we have upgraded the stock to BUY with a fair value of Rs1,598.