Subscribe for NSDL Ltd IPO; Geojit Financial Services

Geojit Financial Services, NSDL Ltd

National Securities Depository Ltd (NSDL) is a SEBI-registered Market Infrastructure Institution (MII) that provides a secure and scalable digital framework for India’s financial markets. As a leading depository, NSDL enables seamless holding and transfer of securities via Demat accounts, supporting a broad spectrum of asset classes—ranging from equities and debt instruments to mutual funds, REITs, InvITs, AIFs, and sovereign gold bonds. As of March 31, 2025, NSDL managed over 39.45 million active Demat accounts via 294 depository participants, with account holders across 99.34% of Indian pincodes and 194 countries. India’s depository market grew at ~27.4% CAGR from FY17-FY25 and is expected to grow at ~11–12% CAGR over FY25-FY27, fuelled by retail investor interest, digitization and rising financial literacy.

Valuation and Outlook

At the upper price band of ₹800, NSDL’s FY25 P/E ratio of 47x appears reasonably priced compared to its peer. Considering its dominant share in AUC, rapid growth in financials, stable revenue stream, healthy return ratios and focus on digital infrastructure expansions ahead, we assign a ‘Subscribe’ rating with a long-term investment perspective.