NSDL Shares Extend Decline For Fourth Day; Fall 24% From Post-Listing Highs

Shares of National Securities Depository Ltd. extended its decline for the fourth day with the stock falling 2.53% to Rs 1,076 apiece. Despite the correction, the share price is trading higher than its initial public offering price of Rs 800.

Post-Listing Performance

The shares have declined 24% from its post-listing price high of Rs 1,425 per share, recorded on Aug. 11. The shares have fallen 7.78% in the last four sessions.

While the company is scheduled to announce its second quarter earnings on Nov. 13, its consolidated revenue decreased 14% sequentially in the first quarter reaching Rs 312 crore. Depository revenue fell 3% quarter-on-quarter but rose 19% year-on-year.

Financial Performance

Lower expenses allowed net profit to grow 8% to Rs 89.6 crore, as against Rs 83.3 crore in the preceding quarter of the last fiscal year.

Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose 4% quarter-on-quarter to Rs 95.17 crore. The Ebitda margin expanded to 30.5% from 25.1% in the previous quarter.

Dividend Payout

In September NSDL marked its first shareholder payout since the company’s listing in August. The NSDL board had recommended a final dividend of Rs 2 per equity share. The company raised Rs 4,011 crore, making it one of the biggest IPOs in the primary market this year.

Shares were priced at Rs 800 apiece and debuted on Dalal Street on Aug. 8 at Rs 880, thus delivering 10% listing gains for investors.

Company Overview

Incorporated in 1996, NSDL operates as one of India’s two depositories. The company’s main competitor is Central Depository Services Ltd. (CDSL).

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Analyst Recommendations

Out of three analysts tracking the company, one maintains a ‘buy’ rating, one recommends a ‘hold,’ and one suggests ‘sell,’ according to Bloomberg data. The average 12-month consensus price target of Rs 1,146.67 implies an upside of 5.4%.

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Conclusion

NSDL shares have extended their decline for the fourth consecutive day, but the company’s financial performance and dividend payout are positive indicators for investors. As the Indian stock market continues to evolve, it’s essential for investors to stay informed and up-to-date on the latest news and trends.

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