Kotak Securities' research report on Central Depository Services
Central Depository Services (CDSL) 1QFY19 operating performance was in line, but lower other income weigh on PAT. Owing to the volatile capital markets, key segments (except data processing) grew at subdued pace. Data Processing revenue declined on challenging capital markets and lesser primary market traction.
Outlook
Besides this, compulsory demat of unlisted companies if it materializes, will further support higher valuation. We reiterate our BUY rating with an unchanged target price of Rs320. At CMP, the stock is trading at 25.3x/22.4x FY19E/FY20E earnings.
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