Your understanding is partially correct. It falls under “Shallow Cyclical” category. It has a base set of earnings which are more stable in nature (charges, fees etc.) that are recurring in nature. On top of that is the earnings driven by market trading volumes. Every time a CDSL user sells a stock, CDSL earns money (check CDSL charges and you will get the answer). During Bull run as there is more trading volumes, this part of earnings goes up dramatically and vice versa in Bear market.
Hope this helps!
| Subscribe To Our Free Newsletter |
