As of Oct’25, NSDL had an aggregate of 103,916 issuers registered on its system, with an extensive network of 302 Depository Participants operating through 55,960 service centres across India. These service centres serve over 42.32 million active demat accounts, covering more than 99% of India's pin codes and 218 countries.
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ICICI Securities Report
National Securities Depository Ltd. provides depository services to investors, issuers, depository participants, financial institutions, stockbrokers, custodians, clearing corporations and other market intermediaries through an integrated platform.
As such, NSDL is a play on broader Indian capital markets, with a mix of recurring/transaction revenue – split 42%/58% as of FY25. Separately, it enjoys a duopoly setup, capital-light, healthy-RoE business model.
We initiate coverage with a Hold rating, based on 40x FY28E EPS which is similar to our CDSL’s target multiple.
The high multiple (notwithstanding the recent sectoral multiple expansion) factors in the long-term relative safe compounding potential with an optionality of market share gain, especially with a new, strong management team and a fresh focus on enhancing digital capability.
Positive/negative market momentum may present upside/downside risks.
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Also Read: Shree Cement's Valuation Discounted Vs Historical Says Motilal Oswal Maintaining 'Neutral' Stance
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