Geojit Financial Services has issued a 'Subscribe' rating for the upcoming NSDL IPO, citing the company’s leadership position in India's depository ecosystem, robust financial metrics, and long-term structural growth drivers.

National Securities Depository Ltd (NSDL), a SEBI-registered Market Infrastructure Institution (MII), plays a pivotal role in India’s capital markets. It enables the electronic holding and transfer of securities via Demat accounts, covering equities, debt, mutual funds, REITs, InvITs, AIFs, and sovereign gold bonds.

As of March 31, 2025, NSDL managed over 39.45 million active Demat accounts through 294 depository participants. Its network spans 99.34% of India’s pincodes and reaches across 194 countries, underscoring its unmatched scale and penetration.

India’s depository market has shown a CAGR of ~27.4% from FY17 to FY25, and is projected to grow at ~11–12% CAGR between FY25–FY27, driven by digitization, financial literacy, and a surge in retail participation.

Valuation-wise, Geojit notes that the IPO's upper band pricing of ₹800 implies a P/E of 47x FY25 earnings, which appears fair when compared to peers in the capital markets infrastructure space. The brokerage highlights NSDL's dominant share in assets under custody (AUC), recurring revenue streams, strong return ratios, and ongoing investments in digital infrastructure as key strengths.

Given these factors, Geojit recommends subscribing to the NSDL IPO with a long-term investment horizon.