Motilal Oswal's research report on CDSL
CDSL’s operating revenue declined 7% YoY and 19% QoQ to INR2.2b (7% miss), primarily due to a 36%/29% YoY decline in transaction revenue/online data charges. For FY25, the company’s revenue grew 33% YoY to INR10.8b. EBITDA declined 26% YoY and 32% QoQ to INR1.1b (10% miss), resulting in an EBITDA margin of 48.7% (vs. 61.4% in 4QFY24 and 57.8% in 3QFY25). For FY25, its EBITDA grew 28% YoY to INR6.2b. Operating expenses jumped 24% YoY to INR1.2b due to a 14%/28% YoY increase in employee costs/other expenses. PAT for the quarter declined 22% YoY and 23% QoQ to INR1b (10% beat). For FY25, it grew 25% YoY to INR5.3b. PAT margin came in at 44.8% vs. 53.8% in 4QFY24 and 46.7% in 3QFY25.
Outlook
We expect CDSL to post a revenue/EBITDA/PAT CAGR of 12%/13%/13% over FY25-27. We reiterate our Neutral rating on the stock with a one-year TP of INR1,150 (premised on a P/E multiple of 35x on FY27E earnings).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
