CDSL Shares Analysis | CDSL Shares Fundamental Analysis

CDSL Shares Fundamental Analysis

CDSL has many streams of revenue and only 19% of revenue comes from transaction charges. Only 4% of investors in India have the Demat account so there is a large opportunity ahead. I don't see a big impact because of investors also investing in other country stocks.

Revenue breakup:

Transaction charges: 19%
IPO/corporate actions: 10%
Online data charges: 16%
other: 10%

around 50% of their income is market sensitive. in a bull market, it will be very good and in a bear market, it will be very bad.

CDSL Shares Analysis, CDSL Shares Fundamental Analysis

Q: what will be the impact on CDSL due to NSE allowing trading for foreign funds
A: Additional positive trigger..


Q: but people will be interested in other country stocks, so depository will be different and that depositary will take market share (because money will shift from domestic market to international market) of CDSL...

A: No. The NSE floated foreign stock proposal is to use the existing depositary. So, investors buying foreign stocks through NSE will have their shares in NSDL/CDSL. And pay transaction charges to NSDL/CDSL. So, it is a +ve trigger.

Q: that means it will limit or end the cyclic nature of depositories and discount brokers(Angel broking, 5paisa) businesses.

A: Good point. The past cyclicality of CDSL revenues may reduce.