The discount applicable to the following transaction types prior to the revision in
tariff shall continue:
Discount of Rs. 0.25 per debit transactions done by female demat account holders (as sole holder or first holder)
Discount of Rs. 0.25 per debit transaction in Mutual Fund and Bond ISINs.
Earlier, CDSL had a rate per debit transaction that was in the range of ₹3.75 to ₹5.5. Does anyone know how this range was decided for the transaction?
In the light of reduction in transaction charges, its worth noting that transaction charges make up only 26% of CDSL’s total revenue. While it is significant, it is not anything that wont get offset with increasing userbase every month. Additionally, CDSL is also looking into new businesses too which may start adding to top line in few quarters,
Quarterly update:
New invester and companies addition pace is accelerating with nearly 1.2 Crore investor accounts and almost 3500 new companies added during the quarter.
Expect reasonable growth in revenue and profits as compared to Q1.
The problem with such high quality and high growth stocks is that while we see higher valuations and a itch to book profits, but once we exit, it becomes very difficult to enter again as prices don’t fall enough. Let’s look at CDSL valuation chart on Screener:
Valuation in 2021 was at the same level as it is today. If we exited in 2021, we wouldn’t have got the chance to enter back and missed all subsequent gains. Plus also consider tax issue. Price chart updated below,
I agree with you; I’m in the same dilemma. I’ve made peace with my process, which involves booking profits during periods of market exuberance and adding back without hindsight biases. This approach helps me stay consistent.
Additionally, I regularly review the allocation of single stock positions relative to the overall portfolio, as trimming can often be beneficial and use that to buy /add more to other long term stocks.
I also follow the strategy of adding around the moving average on a monthly basis and trimming based on predefined rules.
Disclaimer: I’ve been invested since the 270 range, so I might have my own biases and top 3 allocated stock as of now.
QOQ increase in number of investor accounts at around 4.3%, way lesser than the very high bar set in the previous quarter where it was around 9.5% growth
14 Crore demat accounts roughly translate to 10% of India’s population - the question is how many unique investors we have in India. I wish CDSL publishes the unique count of active customers which would be a better matric to follow.
The day 10% of Indians start investing would be the starting point for this countries’ prosperity and CDSL will likely be one of the biggest beneficiaries in that growth journey.
AJ
Disclaimer: Holding CDSL from last many years. Opinions are biased.
