Duopoly Stock Trading at a Discount of Up to 44% to Keep an Eye On

Synopsis: National Securities Depository Ltd (NSDL) and Central Depository Services (India) Ltd (CDSL), India’s leading depositories, dominate their niche with recurring revenues and minimal competition has been trading at an discount of upto 44% 

Investors often seek high-quality stocks trading at notable discounts. In the duopoly sector, some companies dominate their markets, offering a unique advantage.. One such case has emerged in the duopoly sector, where certain companies dominate their markets, providing stability and pricing power.

This duopoly operates in a niche yet essential segment of the financial market, providing services that nearly all investors rely on. With recurring revenue and minimal competition, it enjoys predictable cash flows and a strong competitive edge.

Despite these strengths, this security has corrected sharply,  at times as much as around 38 percent or more from its prior peaks, creating a valuation gap that some analysts and long‑term investors find intriguing as a potential entry opportunity.

Here are the stocks to look out for 

National Securities Depository Ltd (NSDL) established in 1996. It provides electronic settlement of securities, eliminating the need for physical share certificates, and facilitates faster, safer, and more efficient trading in the financial markets. NSDL offers services such as dematerialization, account maintenance, and settlement of securities across equities, bonds, and government securities, playing a key role in modernizing India’s capital markets. 

With a market capitalization of Rs. 15,798.00 Crores, the shares of National Securities Depository Ltd have declined almost 44.4 percent from a 52-week high of Rs. 1425 to the yesterday’s close price of Rs. 791.15.

Since its listing in August 2025, NSDL has experienced seven consecutive months of losses, with March’s 13.7 percent decline being the steepest. The stock, which debuted at a 10 percent premium and surged to a post-listing high of Rs. 1,425 (up 78 percent), has now fallen 44 percent from that peak.

NSDL is India’s first and largest depository, grown into a market leader with 69.8% of issuers registered and 65.9% of active instruments, servicing nearly all securities with a 99.99% coverage of FPI Demat holdings. It commands a dominant share across key segments, including 97.6% of unlisted company equity, 90.3% of listed debt securities, and 66.5% of total Demat custody value, with over 43.2 million beneficiary accounts and an average asset value of Rs. 12.3 million per account.

With 44.5% of individual and HUF custody market share and an 86.2% share of total income (standalone, Q2 FY26), the depository’s strong presence across both listed and unlisted securities underscores its pivotal role in India’s financial ecosystem.

The company’s revenue declined by 0.81 percent from Rs. 363 crores in December 2024 to Rs. 360 crores in December 2025. Meanwhile, Net profit rose from Rs. 86 crores to Rs. 90 crores in the same period.

It demonstrates strong financial performance with a ROCE of 23.6% and ROE of 17.8%, supported by a very low debt-to-equity ratio of 0.01, indicating minimal leverage. Its stock trades at a P/E of 42.5, slightly below the industry average of 44.6, reflecting a solid valuation relative to peers.

Central Depository Services (India) Ltd (CDSL) is a major Indian financial market infrastructure company that operates as a central securities depository, founded in 1999 and headquartered in Mumbai. It provides secure, convenient and cost‑efficient electronic depository services by holding securities such as shares, bonds and other financial instruments in dematerialised form, eliminating the need for physical certificates and enabling faster, transparent settlement of trades executed on stock exchanges.

With a market capitalization of Rs. 23,428.90 Crores, the shares of Central Depository Services (India) Ltd have declined almost 38.7 percent from a 52-week high of Rs. 1,828.90 to yesterday’s close price of Rs. 1,121.00.

The total segment revenue increased from Rs. 278.2 crores in Q4 2024 to Rs. 304.6 crores in Q4 2025, showing a growth of Rs. 26.4 crores. Depository Activity, the largest contributor, rose from Rs. 220.09 crores to Rs. 254.4 crores. Data Entry and Storage revenue also grew significantly from Rs. 56.6 crores to Rs. 49.4 crores, while the Repository segment saw a slight gains.

The demat account has a custody quantity of 10.08 million shares, valued at Rs. 8,59,58,658 million. It includes 44,785 equity ISINs and 79,969 other ISINs. The holdings span both equity and non-equity instruments, providing a diversified portfolio.

Overall, the segment revenue demonstrated positive growth year-over-year, with Depository Activity driving most of the increase, followed by steady contributions from the other segments. This reflects a healthy upward trend in business for the period under review.

The company’s revenue rose by 9.43 percent from Rs. 278 crores in December 2024 to Rs. 304 crores in December 2025. Meanwhile, Net profit rose from Rs. 130 crores to Rs. 133 crores in the same period.

The company has delivered strong financial performance, with a ROCE of 42%, ROE of 32.7%, and a 5-year profit CAGR of 37.8%, reflecting efficient capital use and consistent growth. It also maintains a healthy dividend payout of 55% and a solid 3-year ROE track record of 29.7%, highlighting shareholder value creation.

Operationally, the company is improving, with debtor days down from 24.2 to 17.8 and a median 10-year sales growth of 23.7%. A debt-to-equity ratio of 0 further indicates strong financial stability and a conservative capital structure.

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