NSDL Bags 'Neutral' Rating As Motilal Oswal Initiates Coverage With 8% Downside

Given the duopoly nature of the industry and NSDL's superior pricing power, depositories deserve premium valuations. However, the brokerage believes the stock is fairly valued, and all the positives are priced in at current levels..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Motilal Oswal Report.With its leadership in depository services, robust infrastructure, scale advantages, affluent client base, and strategic subsidiaries, National Securities Depository Ltd. is well-positioned to capitalize on market growth. We expect NSDL to deliver a revenue/Ebitda/PAT CAGR of 5%/14%/15% over FY25-28, reflecting the company’s strong market position, diversified revenue streams, and growth potential in India’s expanding capital markets. The company’s operational efficiencies and tech-led scale-up are expected to improve its Ebitda margin over the same period.Given the duopoly nature of the industry and NSDL's superior pricing power, depositories deserve premium valuations. However, we believe the stock is fairly valued, and all the positives are priced in at current levels. Hence, we initiate coverage on NSDL with a Neutral rating and a target price of Rs 1,200 (premised on ~45x FY28E P/E)..Prolonged weak market sentiment or tighter regulatory interventions on fee structures could weigh on transaction volumes and pressure monetization, leading to lower-than-expected earnings growth. However, a sharper-than expected rise in retail participation, stronger IPO activity, or any favorable regulatory stance on pricing could accelerate revenue and drive faster earnings growth than our estimates..Click on the attachment to read the full report:.'Buy' IRM Energy Shares Maintains HDFC Securities But Cuts Target Price — Here's Why.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

NSDL Bags 'Neutral' Rating As Motilal Oswal Initiates Coverage With 8% Downside

Motilal Oswal believes the stock is fairly valued, and all the positives are priced in at current levels. Hence, initiates coverage on NSDL with a Neutral rating.

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