Shares of National Securities Depository Ltd (NSDL) saw a sharp decline of nearly 11% from their intraday high on August 11, following a strong post-listing rally of around 62%. After hitting a high of ₹1,425 earlier in the day, the stock dropped 2% to ₹1,272 in afternoon trade, signaling some profit booking. NSDL made its market debut on August 6, listing at ₹880 on the BSE — a 10% premium over its IPO price, though below grey market expectations.
Despite a strong business model and dominant presence in the depository space, experts caution about short-term volatility. Bhavik Joshi of INVasset PMS pointed out NSDL’s duopoly with CDSL, robust market share, and solid fundamentals, but flagged risks like dependence on transaction volumes and regulatory challenges. With a P/E of 77, NSDL is now valued higher than CDSL (P/E 66), drawing attention to high investor expectations.
Analysts suggest that short-term investors may consider booking profits after the steep rally, while long-term investors can use any dips to accumulate, given NSDL’s growth prospects and increasing demat penetration.
