Brokerage firm JM Financial has begun coverage on National Securities Depository Limited (NSDL) and given it an “ADD” rating.
The brokerage has set a 12-month target price of ₹1,290 per share, suggesting an upside potential of around 17% from the current price of ₹1,103.
NSDL shares were listed in August 2025 at about ₹880 per share. After listing, the stock reached a 52-week high of ₹1,425, but is now trading about 30% below that level.
Why JM Financial is Positive on NSDL
According to Zee Business, NSDL’s core depository business continues to be its main revenue source, supported by:
Growth in the number of demat accounts
Increase in new issuers
Strong custody values
The company’s subsidiaries, NDML and NPBL, contributed around 56% of total revenue in FY25.
NPBL alone has 2.4 million accounts and operates over 3.07 lakh micro-ATMs, showing strong outreach and financial inclusion efforts.
NSDL’s Market Leadership and Future Growth
NSDL continues to dominate India’s securities settlement system.
In FY25, it settled transactions worth ₹103.2 trillion, holding a 66% market share, while CDSL accounted for the remaining 34%.
As of March 2025, NSDL held 85.1% by quantity and 86.8% by value of all securities in demat form. Its total assets under custody stood at a massive ₹464 trillion.
JM Financial projects NSDL’s revenue, EBITDA, and PAT to grow at a CAGR of 11%, 18%, and 15%, respectively, over FY25–FY28.
The brokerage believes that the company’s operational efficiency and technology-driven expansion could further boost its EBITDA margins.
NSDL’s strong high-value account base makes it a preferred choice for institutional investors, while participation from both retail and institutional segments continues to rise.
JM Financial expects NSDL’s profits and influence to grow further as India’s capital markets expand.
