N S D L

Why is National Securities Depository Ltd falling/rising?

As of 06-Aug, the stock price of National Securities Depository Ltd is declining, currently at 820.80, due to underperformance against the Sensex, decreased investor participation, and concerns over high valuation metrics. The stock has seen significant year-to-date and monthly declines, alongside flat financial results, contributing to a bearish trend.

As of 06-Aug, the stock price of National Securities Depository Ltd is falling, currently at 820.80, reflecting a change of -1.4 (-0.17%). This decline can be attributed to several factors highlighted in the provided data. <BR><BR>Firstly, the stock has underperformed significantly compared to the benchmark Sensex, with a year-to-date decline of -22.80% against the Sensex's -7.35%. Over the past month, the stock has decreased by -3.99%, while the Sensex has increased by +0.86%. Additionally, the stock's performance over the last year shows a decrease of -12.31%, which is considerably worse than the -1.97% return of the Sensex.<BR><BR>The stock is also trading lower than its moving averages across various time frames, indicating a bearish trend. Furthermore, there has been a notable decrease in investor participation, with delivery volume dropping by -25.88% compared to the 5-day average. This suggests a lack of confidence among investors, contributing to the stock's downward movement.<BR><BR>Financially, the company reported flat results for the quarter ending June 26, with a profit before tax that fell by -9.4% compared to the previous four-quarter average. The high proportion of non-operating income, which constitutes 34.05% of profit before tax, raises concerns about the sustainability of earnings. Despite a strong long-term return on equity (ROE) of 16.86%, the stock is considered to have an expensive valuation with a price-to-book value of 6.9, further discouraging potential investors.<BR><BR>Overall, the combination of poor recent performance, declining investor interest, and high valuation metrics are contributing to the falling stock price of National Securities Depository Ltd.

Which are the latest news on N S D L?

Are National Securities Depository Ltd latest results good or bad?

National Securities Depository Ltd's latest results show strong revenue growth, with a net profit of ₹98.19 crore and a 65.57% year-on-year increase in revenue. However, declining operating and profit margins raise concerns about profitability, leading to a cautious outlook for the company.

The latest results for National Securities Depository Ltd (NSDL) reflect a mixed performance. On one hand, the company achieved a net profit of ₹98.19 crore for Q1 FY27, which is an increase of 8.97% quarter-on-quarter and 9.55% year-on-year. Additionally, revenue grew significantly, reaching ₹516.63 crore, marking a remarkable 65.57% increase year-on-year and a 12.74% rise from the previous quarter.<BR><BR>However, despite this impressive revenue growth, there are significant concerns regarding profitability. The operating margin (excluding other income) fell sharply to 19.54%, down from 22.67% in the previous quarter, indicating rising cost pressures that are impacting operational efficiency. Similarly, the profit after tax (PAT) margin also declined to 19.03%, down from 19.71% sequentially.<BR><BR>Overall, while NSDL's revenue growth is commendable and represents the highest quarterly sales in its history, the decline in margins and the inability to translate revenue growth into proportionate profit increases raise red flags about the company's operational health. This combination of strong revenue but declining margins suggests that the results are not entirely positive, leading to a cautious outlook for the company moving forward.

Should I buy, sell or hold National Securities Depository Ltd?

What does N S D L do?

National Securities Depository Ltd (NSDL) is a SEBI-registered institution providing various services to India's financial markets, with a recent net sales of ₹458 Cr and a net profit of ₹90 Cr as of March 2026. It operates as a small-cap company with a market cap of ₹16,514 Cr.

Overview: <BR>National Securities Depository Ltd is a SEBI registered market infrastructure institution offering a wide range of products and services to the financial and securities markets in India, categorized as a Small Cap company in the Capital Markets industry.<BR><BR>History: <BR>The company was incorporated on April 27, 2012, originally named "NSDL Depository Limited" in Mumbai. It commenced operations on May 16, 2012, and the latest quarterly results reported are for March 2026, showing net sales and profit.<BR><BR>Financial Snapshot: <BR>Most recent Net Sales: 458 Cr (Quarterly Results - Mar 2026) <BR>Most recent Net Profit: 90 Cr (Quarterly Results - Mar 2026) <BR>Market-cap value: INR 16,514 Cr (Small Cap)<BR><BR>Key Metrics: <BR>P/E: 43.00 <BR>Industry P/E: 20 <BR>Dividend Yield: 0.24% <BR>Debt-Equity: 0.01 <BR>Return on Equity: 16.02% <BR>Price to Book: 6.95 <BR><BR>Contact Details: <BR>Registrar Address: Not available. <BR>Phone: N/A <BR>Email: N/A <BR>Website: N/A

How big is N S D L?

As of 10th June, National Securities Depository Ltd has a market capitalization of 16,514.00 Cr, with Net Sales of 1,529.96 Cr and a Net Profit of 379.74 Cr over the latest four quarters. Shareholder's Funds are valued at 2,005.34 Cr, and Total Assets amount to 2,980.77 Cr.

As of 10th June, National Securities Depository Ltd has a market capitalization of 16,514.00 Cr, categorizing it as a Small Cap company.<BR><BR>In the latest 4 quarters, the company reported Net Sales of 1,529.96 Cr and a Net Profit of 379.74 Cr.<BR><BR>For the latest annual period, the Shareholder's Funds were valued at 2,005.34 Cr, while the Total Assets amounted to 2,980.77 Cr.

Who are the peers of the N S D L?

Peers of N S D L include CRISIL, Anand Rathi Wealth, Nuvama Wealth, Cams Services, KFin Technologies, UTI AMC, Prudent Corp, IIFL Capital, Indian Energy Exchange, and CDSL. N S D L has average management risk and lacks a 1-year return for comparison, while Anand Rathi Wealth leads with a 69.72% return.

Peers: The peers of N S D L are CRISIL, Anand Rathi Wea., Nuvama Wealth, Cams Services, KFin Technolog., UTI AMC, Prudent Corp, IIFL Capital, Indian Energy Ex, and C D S L.<BR><BR>Quality Snapshot: Excellent management risk is observed at CRISIL, Nuvama Wealth, KFin Technolog., Prudent Corp, Indian Energy Ex, and C D S L, while Good management risk is found at Anand Rathi Wea. and UTI AMC. Average management risk is noted at N S D L and IIFL Capital. For Growth, Excellent growth is seen at Prudent Corp, Good growth is found at Anand Rathi Wea., Nuvama Wealth, KFin Technolog., and IIFL Capital, while Below Average growth is observed at CRISIL, Cams Services, UTI AMC, and N S D L. All peers have Excellent capital structure except for N S D L, which has an Excellent rating.<BR><BR>Return Snapshot: The peer with the highest 1-year return is Anand Rathi Wea. at 69.72%, while the peer with the lowest is Indian Energy Ex at -38.84%. N S D L does not have a 1-year return available for comparison. Additionally, KFin Technolog., UTI AMC, and Indian Energy Ex have negative six-month returns.

How has been the historical performance of N S D L?

N S D L has shown significant growth from Mar'22 to Mar'25, with net sales increasing from 761.11 Cr to 1,420.15 Cr, and profit after tax rising from 214.00 Cr to 340.72 Cr, alongside substantial improvements in total assets and cash flow. Overall, the company has demonstrated robust financial performance across key metrics.

Answer:<BR>The historical performance of N S D L shows significant growth in key financial metrics over the past few years.<BR><BR>Breakdown:<BR>N S D L's net sales have increased from 761.11 Cr in Mar'22 to 1,420.15 Cr in Mar'25, indicating a strong upward trend. Total operating income has mirrored this growth, rising from 761.11 Cr in Mar'22 to 1,420.15 Cr in Mar'25. The company's total expenditure, excluding depreciation, also grew from 520.58 Cr in Mar'22 to 1,044.64 Cr in Mar'25, while operating profit (PBDIT) improved from 300.71 Cr in Mar'22 to 490.55 Cr in Mar'25. Profit before tax has seen a similar increase, moving from 279.61 Cr in Mar'22 to 451.04 Cr in Mar'25, and profit after tax rose from 214.00 Cr to 340.72 Cr in the same period. The consolidated net profit reached 343.12 Cr in Mar'25, up from 212.59 Cr in Mar'22. The company's total assets have expanded significantly from 1,686.03 Cr in Mar'22 to 2,980.77 Cr in Mar'25, while total liabilities increased from 1,686.03 Cr to 2,980.77 Cr. Cash flow from operating activities improved from 147.00 Cr in Mar'22 to 557.00 Cr in Mar'25, contributing to a closing cash and cash equivalent of 145.00 Cr in Mar'25, up from 144.00 Cr in Mar'22. Overall, N S D L has demonstrated robust growth across its financial metrics over the past few years.

Is N S D L overvalued or undervalued?

As of August 29, 2025, N S D L is considered very expensive and overvalued with a PE ratio of 72.17, significantly higher than its peers, and has underperformed the market with a 2.92% decline compared to the Sensex's 1.84% drop.

As of 29 August 2025, the valuation grade for N S D L has moved from does not qualify to very expensive, indicating a significant shift in its perceived value. The company is currently overvalued, with a PE ratio of 72.17, an EV to EBITDA of 63.13, and an EV to Sales ratio of 16.69. These ratios are substantially higher than those of its peers, such as Bajaj Finance with a PE of 31.3 and Bajaj Finserv at 32.09, both of which are also categorized as expensive but remain significantly lower than N S D L.<BR><BR>In comparison to the broader market, N S D L's recent performance shows a decline of 2.92% over the past week, while the Sensex has only decreased by 1.84%. This underperformance, coupled with high valuation ratios, reinforces the conclusion that N S D L is overvalued in the current market environment.