Mar'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 falling almost 50% from its high of 2,000 level the stock is now lying at 1,070 and looks like taking long term support. and regain its 1,500 level again on back of market revival in Q2 and following data points. -Central Depository Services (CDSL) performance was broadly in line with our estimates. -The company reported revenue of Rs278cr, up 29.7% YoY. -CDSL’s PAT grew by 20.8% YoY to Rs130cr. -During the quarter, CDSL added 92 lakh new beneficiary accounts. -Currently, the stock is trading at PE of 40.4x FY27E EPS. -We have upgraded the stock to BUY with a fair value of Rs1,598.