As NSDL debuted on the bourses today, investors are reassessing the valuation, growth metrics, and strategic strengths of both players in India’s depository landscape.
CDSL, which got listed in 2017 at Rs 125 per share, has seen its stock rally sharply over the years, reaching a high of around Rs 1,550, a more than 12-fold rise. It remains the only listed depository in the country so far, with a market capitalization of approximately Rs 32,000 crore. In contrast, NSDL’s IPO is expected to value the company at roughly Rs 16,000 crore.
This valuation gap, despite NSDL’s larger scale, is being closely watched. According to Vaibhav Vidwani, Research Analyst at Bonanza, “CDSL, India’s only listed depository, currently holds a market cap of around Rs 32,000 crore. In contrast, NSDL’s upcoming IPO is expected to value it at roughly Rs 16,000 crore — a notable discount considering NSDL’s much larger scale across key metrics.”
NSDL, which was the first depository to be established in India, continues to maintain a dominant position in several areas. As of FY25, NSDL holds securities worth Rs 464 trillion, compared to Rs 71 trillion managed by CDSL.
It also leads significantly in institutional coverage, with over 10.47 lakh non-retail investor accounts as opposed to CDSL’s 2.17 lakh. “NSDL leads in number of accounts held by investors other than resident individuals (like corporate, FPI, HNIs),” noted Vidwani.On the operational side, NSDL has outperformed in terms of revenue efficiency. “Although CDSL leads in retail demat accounts, NSDL outperforms in revenue efficiency, earning almost three times more operational revenue per investor,” said Vidwani.The depository also has a wider presence among companies holding shares in dematerialized form. “As of FY23, about 40,897 companies are linked to NSDL, which is almost double compared to 20,323 companies on CDSL. This shows that NSDL is more widely used by companies and plays a bigger role in India’s share market system,” he added.
CDSL, on the other hand, benefited immensely from the post-COVID retail participation boom. Retail investor interest surged in FY22, resulting in a sharp jump in new account openings. However, this momentum has since slowed.
“After COVID, many retail investors started investing in the market, which helped CDSL grow quickly. This led to a big jump in new accounts, especially in FY22. But in FY23, this growth slowed down,” Vidwani observed.
He added, “As retail growth starts to settle, the market may start focusing more on core strengths like how much money each investor brings in and how strong a company is with big institutional clients. In these areas, NSDL is stronger, which makes it attractive in the long run.”
Saurabh Jain, Equity Head – Research (Fundamentals) at SMC Global Securities, highlighted the broader fundamentals behind NSDL’s investment appeal. “National Securities Depository Limited presents a compelling IPO opportunity, underpinned by its market leadership, robust technology-driven infrastructure, and stable recurring revenue model,” he stated.
“With dominant market share, a wide service reach, and diversified asset coverage, NSDL is well-positioned for long-term growth, supported by macroeconomic tailwinds and regulatory enablers,” Jain added.
He, however, cautioned that investors should remain cautious of its dependence on transaction volumes, evolving investor behavior, and high regulatory and cybersecurity risks.
Meanwhile, technical indicators for CDSL have weakened recently. Jigar S Patel, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, pointed out that “CDSL has breached key support levels at Rs 1,650 and Rs 1,550, signaling weakness in the stock’s short-to-medium-term trend.”
He further noted that the stock is nearing its 200-day exponential moving average (DEMA), which stands around Rs 1,463 — a level that may act as the next significant support.
On the overall outlook, Patel said, “The overall technical structure appears distorted, suggesting limited upside in the near term. Traders are advised to book profits on any bounce towards Rs 1,600 and adopt a wait-and-watch approach until the stock stabilizes near the Rs 1,460 mark for any fresh buying opportunity.”
On Tuesday, CDSL shares closed 1.27% higher at Rs 1,542.20 on the NSE.
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