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Jun 19, 2017 04:19 PM IST | Source: Moneycontrol.com

Subscribe to CDSL: Aditya Birla Money

Aditya Birla Money has come out with its report on CDSL. The research firm has recommended to "Subscribe " the IPO in its research report as on June 16, 2017.

Subscribe to CDSL: Aditya Birla Money

CDSL is 2nd largest depository in India with 44% market share in terms as on FY17. However, it is noteworthy that CDSL held 60% market share of FY17 incremental BO accounts at 13.7% YoY growth. CDSL has been
gaining market share in recent times which provides us comfort in terms

of visibility of revenue growth.

Valuation
Steady growth, asset-light nature of business and decent RoE of ~20%
shall enable the stock to command high valuation. Asset light nature of
business enables the company to distribute 35-50% of profits as
dividend. In FY17, it had paid ` 3/share as dividend. The IPO is
attractively priced with TTM PE of 18x at higher price band of ` 149.

Recommend SUBSCRIBE on the issue.

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