New Delhi, Sept. 18 -- Domestic brokerage firm Motilal Oswal, in its latest report, has initiated coverage on NSDL, the country's first depository, with a 'Neutral' rating and a target price of Rs.1,200, signaling an 8% downside from its latest closing price.

While the brokerage remains optimistic about the company's long-term growth prospects-highlighting its leadership in depository services, robust infrastructure, scale advantages, affluent client base, and strategic subsidiaries-it believes the stock is fairly valued and that all positives are already priced in at current levels.

"Given the duopoly nature of the industry and NSDL's superior pricing power, depositories deserve premium valuations. However, we believe the stock is fair...