Thread by @ajitsuryak

#CDSL Thread 💰

India’s only listed and largest(no. of accounts) securities depository

Current BO Accounts: 2.89 Cr

BO accounts grew at a CAGR of 19% from 1.08 cr in FY 2015-16 to 2.12 cr in FY 2019-20

@Atulsingh_asan @caniravkaria @Coolfundoo @saketreddy @Jitendra_stock

#CDSL (2/n)

ROCE 5Yr -22.7 %; ROE 5Yr -17.0 %

CDSL market share of investor accounts stands at 54% in FY20

CDSL incremental market share stands at 78% for FY20

Works similar to a bank but holds stocks and securities, not money

@vetris_stocks @ThetaVegaCap

#CDSL (3/n)

~35% of the revenue is an annuity in nature and ~45% is market-linked (Transaction, IPO/corporate action, and KYC)

Aadhaar based e-KYC for account opening, which will further boost CVL-KYC volumes.

28 lakh accounts added in last quarter alone

#CDSL (4/n)

Demat of ~70K Unlisted public companies

CDSL charges Rs 15K/company as fixed onetime charge and Rs 6K/company based on paid-up equity capital

Issuer growth in FY22E is driven by the addition of new companies and proposed hike in issuer fee

#CDSL (5/n)

High Moat and Recession Free Business

Change in dividend policy, with aggressive dividend payout in future(expected), could significantly boost RoE in coming years

CDSL unlisted market share is at 30%, which can go up with new incentive structure

#CDSL(6/n)

Major shareholders: BSE, Canara Bank, HDFC Bank, LIC

CDSL has more no of DP’s than NSDL due to more retail focus, whereas NSDL is institutional focused

CDSL is more DP friendly: lower transaction fee for higher volume, zero fixed fees for no activity

#CDSL(7/n)

Facilitates holding of insurance policies in the electronic form to the holders of these policies through CIRL

Provides KYC services in respect of investors in Indian capital markets to all market intermediaries through CVL

BOs are serviced by CDSL’s 596 DPs