Here is a journey of the success and rise of Central Depository Services (India) Limited (CDSL). Below are the 10 facts about CDSL.
Central Depository Services (India) Limited operates as a securities depository in India. The Company offers service for a range of clients, such as depositary participants and other capital market intermediaries, corporates, capital market intermediaries, insurance companies and others.
Central Depository Services (India) Limited or CDSL started its operations in the year 1999 and was initially promoted by the BSE Ltd, which thereafter divested its stake to leading banks. CDSL facilitate holding and transacting in securities in the electronic form and facilitates settlement of trades executed on stock exchanges. These securities include equities, debentures, bonds, Exchange Traded Funds (ETFs), units of mutual funds, units of Alternate Investment Funds (AIFs), Certificates of deposit (CDs), commercial papers (CPs), Government Securities (G-Secs), Treasury Bills (TBills), etc.
This article covers:
Fact No.1 First Depository to reach 4,00,00,000 (4 crore) demat accounts
CDSL is the first depository to have demat accounts of more that 4,00,00,000 (4 crore). It has almost 10 lakhs account s in the year 2005 and 1 crore accounts in the year 2015 and now crossed 4 crore accounts.
Fact No.2 First Depository to be listed in Asia Pacific region and 2nd only in entire world
CDSL is the first and only depository in Asia Pacific Region to be listed on Stock exchange. It is 2nd only in entire world . The Depository Trust Company (DTC) is largest securities Depository in the world and based in New York.
Fact No.3 First Depository to launch operations in IFSC , Gift City
Recently CDSL has launched its operations in IFSC, Gift City. As a depository, CDSL aims to offer new products like depository receipts, delivery based trading to international clients.
Fact No.4 Depository with Highest number of Beneficiary Ownership (BO)
CDSL is the only depository to have highest number of Beneficiary Ownership . it offers various facility to BO holders to monitor their holdings.
Fact No.5 Facilitating Commodity Repository
CDSL through its subsidiary has started operations in Commodity Repository and issued 26,500 e-warehouse Receipts and associated with 3258 warehouses.
Fact No.6 Top 5 Shareholders includes BSE Ltd, HDFC Bank, SCB, LIC and PPFAS MF
CDSL is a professionally managed company and promoted by BSE Limited . The Top 5 shareholders are reputed financial institutions which include BSE Limited, HDFC Bank Ltd., Standard Chartered Bank , Life Insurance Corporation (LIC) and PPFAS Mutual Funds with their aggregate holding more than 42%.
Fact No.7 First and Largest KYC Registration Agency (KRA)
CDSL has ventured into various other allied service solutions which include e-KYC Registration Agency. It has also forayed into MF repository and Insurance Repository. Presently CDLS is the largest KYC registration agency in India.
Fact No.8 Highest EBITDA margin of 71% (Q4FY20-21)
Based on the financials of 31st March 2021, the CDSL has achieved highest EBITDA margin of 71% in Q4FY20-21. This shows the strong financial strength of the Company. CDSL operates in Duopoly business and hence commanding such high profit margin.
Fact No.9 Highest PAT margin of 53% (Q4FY20-21)
Based on the financials of 31st March,2021, the CDSL has achieved highest PAT margin of 53% in Q4FY20-21. Very few businesses commands such high profit margin .
Fact No.10 Current Share price more than Rs.1030 has given 5X returns since listing price around Rs.250 in June 2017.
Current share price of CDSL is Rs.1030 (as on 3rd July 2021). The Company has created huge wealth for the Investors those who are holding the stock of CDSL since its inception. The share price was around Rs.250 during listing in June 2017. Just in the span of 4 years, the investment has given more than 400% returns to the investors.
Brief Summary of CDSL
Note: The figures mentioned in this articles are based on results declared by the Company on 31st March 2021. The stock is forming part of our small case ( smallcase )(Source : Company and Wealthemoji Research)
The article has been written and published by Mr. Vinayak Vilas Joshi, a SEBI registered Research Analyst having registration number- INH000008330 under SEBI (Research Analyst) Regulations, 2014.
Note: The content in this article is provided for informational purposes only. The stock is forming part of our small case. No material should be considered as investment advice directly, indirectly, implicitly, or in any manner whatsoever. Past performance is not an indicator of future performance. Wealthemoji accepts no liability whatsoever for any direct or consequential loss or damage arising from any use of any information in this article.
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