CDSL | Amid inherent volatility in markets, CDSL is relatively low-risk proxy for capital mkt growth

Indian equities are on a roll. And it is not just the secondary market that is racing ahead, primary market too is bustling with raft of new issue. The dazzling rise in equities has been accompanied by the addition of new investors and traders and rise in retail trading volumes. Central Depository Services Ltd (CDSL), the only listed depository, benefits from these trends. CDSL’s revenue pool is de-risked by diverse nature of the charges. It enjoys strong financials, high earnings visibility. It has entered into new businesses that lend immense scalability to CDSL’s business model. Being a leading company in secular growth sector and in the absence of suitable and comparable listed peer, CDSL warrants attention.