ADVERTISEMENT

CDSL Q4 Results Review - High Base A Challenge, But Fundamentally Enjoys Several Tailwinds: ICICI Securities

CDSL Q4 Results Review - High Base A Challenge, But Fundamentally Enjoys Several Tailwinds: ICICI Securities

<div class="paragraphs"><p>A trader reacts while working in a brokerage house in Mumbai. (Photographer: Prashanth Vishwanathan/Bloomberg News)</p></div>
A trader reacts while working in a brokerage house in Mumbai. (Photographer: Prashanth Vishwanathan/Bloomberg News)

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Central Depository Services India Ltd. remains a stable play on capital markets and is prime beneficiary of higher retail participation. This is reflected in 53%/60% growth in FY21/22 revenue split 69%/31% between market-linked/non-market linked components as on nine months FY22.

While CDSL’s leadership in demat account additions and cost control remain strong achievements in FY20-FY22, the cyclical nature of retail business is an inherent limitation to factoring in more than 15% structural growth.

Going ahead, growth will become challenging on the high base of FY21/FY22.

Yet, the high possible revenue growth during a retail upswing as seen in FY21/22, dominant position in the duopoly depository market and tailwinds of digitisation and momentum in Indian capital markets are strong investment arguments for the company.

Click on the attachment to read the full report:

ICICI Securities CDSL Q4FY22 Result Update.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.