NSDL share price: The company’s shares are currently about 68% more expensive than they were at the initial public offering (IPO) of Rs 800 each.
NSDL Share Price Rally: Stock Jumps 19% on Day 3, Market Cap Hits ₹26,000 Cr
On August 8, National Securities Depository (NSDL) shares increased by about 19 percent, continuing their strong advances for the third straight day since the market’s opening. The company’s shares have now increased in value by almost 68% since the first public offering.
In the three sessions after their market debut, the shares have already increased by about 52%. In the first three days, the company’s market valuation increased dramatically to over Rs 26,000.
On August 6, NSDL’s shares had a respectable start on the stock market, listing on the BSE for Rs 880 a share. This represented a 10% premium over its IPO price of Rs 880 per share. Estimates from the gray market were higher than the listing premium.
The company’s unlisted shares were trading at a gray market premium of around 16 percent above the IPO price prior to listing. Given NSDL’s solid fundamentals and dominance in the depository industry, analysts advise investors to think about holding the company for the long run.
The current P/E ratio of NSDL is about 77, which is greater than that of competitor CDSL, which is approximately 66. With the stock rising more than 48% in only three sessions and the market capitalization surpassing ₹25,000 crore, NSDL’s post-listing performance has been nothing short of spectacular.
The market’s confidence in NSDL’s solid standing within India’s capital market infrastructure is demonstrated by this increase. “NSDL enjoys strong pricing power, high entry barriers, and a dominant share in value-based transactions and institutional account holdings as one of only two depositories operating in a near-duopoly alongside CDSL,” stated Bhavik Joshi, Business Head, INVasset PMS.
He pointed out that although the stock’s current P/E multiple of about 77 might seem high in comparison to CDSL’s 66, investors are obviously prepared to pay more for the company’s size, technological foundation, and established reputation in the industry. However, reliance on transaction volumes, changing investor involvement trends, and the constant need for cybersecurity and regulatory compliance are some structural concerns that potential investors should be aware of. He said, “If market activity slows down in the near future, valuations may moderate, providing possible entry points for those who missed the IPO.”
In the meanwhile, Vibhavangal Anukulakara Private Limited’s founder and managing director, Siddharth Maurya, stated: “NSDL’s robust post-listing rally…demonstrates strong investor belief in its market infrastructure position.” Being a key player in the Indian financial system, NSDL’s solid foundation and dominant position are clearly appealing to both institutional and individual investors.
Disclaimer: Moneycontrol experts’ opinions and financial advice are their own and do not represent the opinions of the website or its administrators. Before making any investing decisions, Business Connect Magazine recommends customers to consult with qualified professionals.
