Central Depository Services (India) Limited

“CDSL is a textbook long-term compounder — regulatory duopoly moat, zero debt, 30%+ ROE, and a decade-long India equity-penetration tailwind — but at 55x trailing earnings the entry price embeds a near-perfect execution scenario with no margin of safety against the one credible permanent-impairment risk: SEBI fee compression. Expected 10-year returns are adequate but not exceptional from current levels, making this a high-quality watchlist name requiring a 25-30% drawdown before a meaningful position is warranted.”