NSDL IPO Shares Rally Nearly 50% in Three Days, Analysts Recommend Long-Term Hold
NSDL stock surges post-listing, hitting ₹25,000 crore market cap. Experts highlight strong fundamentals amid market optimism.
NSDL Stock Jumps 48% Since Listing, Extends Gains Amid Strong Market Debut
National Securities Depository Limited (NSDL) shares surged nearly 16% on August 8, marking the third straight day of strong gains since its market debut. This rally pushed the stock over 48% higher than its initial public offering (IPO) price in just three sessions, reflecting robust investor confidence.
At a glance, NSDL’s market capitalization crossed the ₹25,000 crore threshold within days of listing, showcasing the market’s positive reception. The company made a promising stock market debut on August 6, listing at ₹880 on the Bombay Stock Exchange (BSE)—a 10% premium over its ₹800 IPO price, albeit slightly below grey market expectations.
Before listing, NSDL shares commanded a grey market premium close to 16% over the IPO price, indicating early investor optimism. Analysts emphasize that NSDL’s strong fundamentals and leadership in the depository services space underpin its growth potential.
The stock’s current price-to-earnings (P/E) ratio hovers around 77, higher than peer Central Depository Services Ltd (CDSL), which trades at about 66. This premium reflects investor confidence but also signals the stock’s valuation is elevated relative to competitors.
Prashanth Tapse, Senior VP and Research Analyst at Mehta Equities, highlights NSDL’s dominance in value-based transactions and institutional holdings, underpinned by advanced technology and a near-duopoly with CDSL. He advises, "Investors who received allotments should consider holding long-term, while others might watch for any post-listing dips to buy in."
Saurabh Jain, Head of Equity Research at SMC Global Securities, agrees on NSDL’s solid market position and growth outlook, citing favorable macroeconomic trends and regulatory support. However, he cautions investors about risks tied to transaction volumes, shifting investor behavior, and cybersecurity challenges.
In summary, NSDL’s share price momentum post-IPO reflects strong market trust and sector leadership, making it a compelling consideration for long-term investors despite valuation and risk factors.
