Small info about #CDSL business Model which will tell why price turned 4X after march
Data Source: Annual Report Finology Blog and Google
CDSL is one of the two security depositories which holds securities in an electronic form, same like a bank account which holds our money
Data Source: Annual Report Finology Blog and Google
CDSL is one of the two security depositories which holds securities in an electronic form, same like a bank account which holds our money
2.
In Securities market investors needs to go through an intermediary known as DP (Known as Broker)
Revenue Source
•Annual issuer charge: Every issuer (Listed securities) is required to pay an annual fee to the depositor, which is decided by the market regulator
In Securities market investors needs to go through an intermediary known as DP (Known as Broker)
Revenue Source
•Annual issuer charge: Every issuer (Listed securities) is required to pay an annual fee to the depositor, which is decided by the market regulator
3.
Transaction Charges: holdings r kept by the Depository, but transaction is carried through the broker, any transaction done by an investor, the broker has to pay a fixed amount.
Online data charges:CDSL is engaged in KYC services through its subsidiary CDSL Ventures Ltd (CVL)
Transaction Charges: holdings r kept by the Depository, but transaction is carried through the broker, any transaction done by an investor, the broker has to pay a fixed amount.
Online data charges:CDSL is engaged in KYC services through its subsidiary CDSL Ventures Ltd (CVL)
4.
IPO & corporate action charges: - CDSL facilitates crediting of securities for IPO and other corporate actions, such as share splits and consolidation, payment of dividends. For these services, CDSL charges a fixed amount to the issuer company based on the number of folios.
IPO & corporate action charges: - CDSL facilitates crediting of securities for IPO and other corporate actions, such as share splits and consolidation, payment of dividends. For these services, CDSL charges a fixed amount to the issuer company based on the number of folios.
5.
Other segments: The company also earns through account maintenance charges, E-voting charges, ECAS charges and other operating revenues.
The major part of the revenue, around 34%, comes from Annual issuer charges, which is a kind of stable revenue stream.
Other segments: The company also earns through account maintenance charges, E-voting charges, ECAS charges and other operating revenues.
The major part of the revenue, around 34%, comes from Annual issuer charges, which is a kind of stable revenue stream.
6.
Positive Points:
-Duopoly Business only two players in market (CDSL and NSDL)
-have asset-light business model with minimal fixed cost requirement and hence enjoys above 50% profit margins
-have 3Cr+accounts & around 600 DP's registered including Zerodha, Upstox, Angel Broking
Positive Points:
-Duopoly Business only two players in market (CDSL and NSDL)
-have asset-light business model with minimal fixed cost requirement and hence enjoys above 50% profit margins
-have 3Cr+accounts & around 600 DP's registered including Zerodha, Upstox, Angel Broking
7.
Due to higher switching charges, DPs prefer to stay with the Depository for a long period.
Company given 24.1% CAGR over last 5yrs, Debt free business with high profit margin and 20% ROE.
Due to higher switching charges, DPs prefer to stay with the Depository for a long period.
Company given 24.1% CAGR over last 5yrs, Debt free business with high profit margin and 20% ROE.
8.
Very Low active participation by Indian Public in stock market (Around 3.7 %) which is far lower than the other developed and developing country like china, with growth story India will have more active investors in coming time will benefit CDSL business
Very Low active participation by Indian Public in stock market (Around 3.7 %) which is far lower than the other developed and developing country like china, with growth story India will have more active investors in coming time will benefit CDSL business
Threats to CDSL Business
Introduction of new player in segment which is difficult as rigorous compliance norms
Shrinking of Trading volume if faced issues like slowdown in economy
CDSL tariff are controlled by SEBI so any change in structure can impact CDSL profit margins
Introduction of new player in segment which is difficult as rigorous compliance norms
Shrinking of Trading volume if faced issues like slowdown in economy
CDSL tariff are controlled by SEBI so any change in structure can impact CDSL profit margins
Note : This is not investment suggestion and I am toddler in equity market learning from @Atulsingh_asan @ar_inamke @ash_lodha
Just a copy paste data from different sources for learning purpose.
Just a copy paste data from different sources for learning purpose.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
