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Investing.com - Motilal Oswal Securities initiated coverage on NSDL (NSDL:IN) with a Neutral rating and a price target of INR1,200, citing fair valuation despite growth potential.
The brokerage firm noted that NSDL has increased its focus on investor engagement by expanding partnerships with fintech brokers and enabling digital onboarding in tier 2/3 cities, which has boosted its incremental demat market share from 10% in August 2024 to 17% in August 2025.
Motilal Oswal highlighted that NSDL’s current incremental market share remains below its overall demat account market share of approximately 20%, indicating room for further expansion and growth in the depository business.
The research firm pointed to NSDL’s subsidiaries NDML and NPBL as positioning the company beyond a pure-play depository, providing diversification opportunities despite currently contributing less than 10% to net profit.
Motilal Oswal projects a revenue, EBITDA, and PAT compound annual growth rate of 5%, 14%, and 15% respectively over FY25-28, but believes the stock’s current price already reflects these positive factors, with the price target based on approximately 45 times FY28 estimated price-to-earnings ratio.
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