NSDL Unlisted Shares
About NSDL Unlisted Shares
NSDL, established in August 1996 under the Depositories Act, is one of the world’s largest securities depositories. It pioneered the dematerialization of securities in India, significantly reducing risks related to paper-based settlements. Operating like a bank for securities, NSDL offers a safe, efficient, and cost-effective system for electronic security transactions.
It holds and manages securities through a robust digital infrastructure, facilitating seamless transfer of ownership via account-to-account transfers. With over 3.57 crore client accounts and ₹423.44 lakh crore in demat custody, NSDL plays a crucial role in India’s capital market ecosystem.
Business Division
a. Depository Participants (DPs):
DPs are intermediaries who offer NSDL’s depository services directly to investors. The network has grown from 3 to 281 DPs, covering almost every Indian pincode.
b. Issuer Companies and Registrars:
NSDL collaborates with over 46,000 companies and their registrars for share issuance, transfers, and corporate action facilitation.
c. Clearing Corporations:
NSDL is electronically linked with major clearing corporations, streamlining trade settlements for dematerialized securities on stock exchanges.
Financial Highlights (P&L & Balance Sheet in 7 concise points)
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Revenue Growth:
NSDL’s revenue rose from ₹761 Cr in 2022 to ₹1,268 Cr in 2024, reflecting a strong CAGR and rising market demand. -
Profitability:
PAT increased from ₹212 Cr (2022) to ₹275 Cr (2024), with NPM of 21.69%, showcasing consistent earnings performance. -
EBITDA & Margins:
EBITDA stood at ₹285 Cr in 2024 with an OPM of 22.48%, indicating stable operating efficiency despite rising costs. -
Operating Costs:
Other expenses jumped from ₹417 Cr in 2022 to ₹860 Cr in 2024, implying increased operational investments or scaling. -
EPS Trend:
Earnings per share grew to ₹13.75 in 2024 (FV ₹2), demonstrating solid returns for shareholders post restructuring. -
Asset Expansion:
Total assets increased to ₹2,258 Cr in 2024, driven largely by investments and fixed assets (₹1,493 Cr & ₹277 Cr respectively). -
Debt-Free Status:
NSDL has zero borrowings, highlighting a strong balance sheet with sustainable operations funded purely through internal accruals.
Pros
- Market Dominance: NSDL holds ₹423.44 lakh crore in demat custody, reflecting its leadership in the Indian depository space.
- Wide Reach: Presence in over 2,048 towns and nearly all Indian pincodes ensures access to a broad investor base.
- Robust Financials: A debt-free model with rising revenue and profitability signals financial health and investor confidence.
Cons
- Rising Expenses: Significant jump in operating costs may affect future profit margins if not controlled effectively.
- Dependency on Market Activity: NSDL’s performance is closely tied to stock market volume and demat activity, which are cyclical.
- Limited Global Exposure: NSDL primarily serves the Indian market, which might limit its growth compared to globally diversified players.
