NSDL Stock Drops 10% from Highs – Should Investors Book Profits?

On: August 11, 2025 10:03 AM

NSDL Stock Drops 10% from Highs – Should Investors Book Profits

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National Securities Depository Limited (NSDL) shares witnessed sharp volatility on August 11. The stock initially surged at market open, touched fresh highs, and then tumbled nearly 10% from the peak. At one point, prices slipped into the red before recovering later in the day. By 3:25 PM, the stock was trading at ₹1,265.95, up 2.64%. This leaves investors wondering – is it time to book profits?

Rally Since Listing

Since its listing on August 6, NSDL shares have seen a consistent upward trajectory. On August 11, the stock touched ₹1,425, more than 80% above its IPO issue price of ₹800. Impressively, it reached this level within just four trading sessions.

Trading volumes have been high:

August 6: 3.7 crore shares traded
August 7: 5.1 crore shares traded
August 11 (first 3 hours): 2.5 crore shares traded

NSDL Valuations No Longer Cheap

Post-listing, NSDL’s management outlined its focus on expanding market share in the retail segment and highlighted strong growth prospects for both its subsidiaries.

Market expert Ambareesh Baliga noted that at IPO pricing, NSDL was cheaper compared to rival CDSL. However, the sharp rally has made NSDL relatively expensive now.

Short-Term Investors May Consider Profit Booking

Baliga observed that some long-term investors have been shifting funds from CDSL to NSDL, and momentum traders have also entered the stock, fueling the price surge. He suggested that IPO allottees could consider booking profits at current levels and reallocating funds to CDSL.

Long-Term Investors Can Hold NSDL

From a valuation perspective, NSDL trades at a P/E multiple of around 77, compared to CDSL’s 66. Despite the higher valuation, investors seem willing to pay a premium for NSDL’s quality.

Bonanza’s Senior Research Analyst Nitin Jain advised that while short-term traders may lock in gains, long-term investors can hold on, as NSDL remains a high-quality stock with strong fundamentals.

Investor Takeaway:

Short-term view: Book profits and re-enter later if valuations cool down
Long-term view: Hold for potential growth in retail market share and subsidiary expansion

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