CDSL reported strong earnings for Q2 FY25, driven by improved realizations and strong volume growth despite reduced transaction charges.

The company, with a market capitalization of ₹33,189 crore, continues to benefit from favorable market conditions and is considered a key player in the financial services sector.

Its subsidiary, CVL, also posted a profit of ₹66 crore in the first half of FY25. The issuance of insurance policies in demat form is expected to contribute to further growth.

CDSL has a strong financial standing and high earnings visibility, making it an attractive investment. The company's outlook is expected to be enhanced by medium-term triggers such as protectionist measures in the tyre industry and the China plus strategy.

Although valuations may not be cheap, the potential for earnings growth justifies the current price levels, leading to an "Overweight" rating for the stock.