Unlisted Shares

Healthy Revenue Growth:- The company has shown Year-on-Year (Y-o-Y) revenue growth of 34.0% in FY23. The 5-year CAGR growth of Revenue stands out at 30.4%   

Robust EBIT Margins:- Company is clocking quite healthy margins. Y-o-Y. Company clocked healthy EBIT margin of 24.8% in FY23       

Growth in Profitability of the company:- Company is clocking profit consistently. Company showed profit growth of 12.7% Y-o-Y in FY23 increasing its profit from Rs 212.5 Cr in FY22 to Rs 234.8 Cr in FY23 

Leader in Dematerialization (Demat):- Company holds 3,224 billion (bn) Securities in Demat Form vs its competitor 613 bn in FY23. The value of these securities stands out at Rs 302 trillion (tn) vs its competitor Rs 40 tn in FY23. 

Backed By Financial Institutions:- Company is backed by some of the renowned strong institutions like National Stock Exchange holding 24.0%, HDFC Bank Limited holding 9.95% and Unit Trust of India holding 6.83%

Investment Thesis:- As per a report by Jefferies the Depositories trade at a P/E multiple of 48x. CDSL which is a close competitor is trading at a P/E multiple of 62.4x. Now assuming the fair P/E multiple of 48x (after incorporating certain unlisted discounts), and taking FY23 EPS of Rs 11.7 for NSDL, the total market cap of NSDL stands at Rs 11,270 Cr (Share Price of Rs 563) which is fairly valued. The company seems to be a good investment opportunity for the long-term