National E-Repository Limited (NeRL) has revolutionized the way electronic negotiable warehouse receipts (eNWRs) are created and managed. With a growing customer base, significant milestones, and strong backing from prominent banks and institutions, NeRL is set to benefit from the expanding eWR market. In this video, we’ll explore its achievements, financials, and what makes NeRL a standout player in the commodity sector. National E-Repository Limited (NERL) started its operations on September 26, 2017 and is regulated by Warehousing Development and Regulatory Authority (WDRA) as a Repository and Platform for Creation and Management of Electronic Negotiable Warehouse Receipts (eNWRs). The main business of NERL is to offer a digital platform for the creation and management of eNWRs, issued in warehouses registered with the WDRA. The Company does not have any Subsidiary, Joint Venture or Associate Company. NERL has more than 9,980 active customers (over 2,000 customers added in FY 2023-24), 76 pledgee Banks/ NBFCs, 3 CM Pledgees, 1096 unique Warehouses issuing eNWR/eNNWR and 99 Repository Participants ('RPs') across 17 states and 1 UT in India. NERL has issued more than 5.5 lakh eNWRs (Exchange + Emerging Business) for commodities in excess of 59.70 Lakhs MT (Exchange + Emerging Business) deposited in registered warehouses of WDRA. A new milestone was achieved in FY 2023-24 as Banks crossed Rs. 7,000 Crores finance against eNWR since inception, a clear indication of growing confidence of banks in eNWR. And now, coming to its financials, March 2024 revenue was Rs. 10.8 Cr. Vs. Rs. 9.6 Cr. in the PY which is a growth 12.5 % PAT was Rs. -5.0 Cr in March 2024 Vs. Rs. -5.5 Cr. in the PY which is a growth of -9.1% And the EPS went from Rs. -0.7 in Mar 2023 to Rs. -0.6 per share in March 2024. With outstanding shares of 8.1 Cr. their market cap at the current share price stands at 540.0 Cr. with a PE multiplier of -10.7. Soon, all warehouse storages will be required to use eWR, which will significantly benefit NeRL as the market expands. In comparison, NeRL can be seen as the "CDSL" or "NSDL" of the commodity market. While CDSL and NSDL are valued at Rs 35,000 crore and Rs 20,000 crore respectively, NeRL’s current valuation is only around Rs 500 crore. For reference: CDSL has a market cap of around Rs 33,453 crore (as of Nov 2024) with a revenue of Rs 907 crore, implying a market cap to revenue multiple of ~37x. NeRL reported a revenue of ~Rs 11 crore in FY23-24. Given its dominant position in the commodities repository market, supported by its parent company NCDEX and its strong technology and market knowledge, it is reasonable to apply a higher revenue multiple. With a multiple of 50x, NeRL’s valuation could rise to approximately Rs 540 crore (or Rs 66.67 per share). Now, talking about its shareholders, these are the top shareholders owning the majority of the shareholding rights: Apart from National Commodity & Derivatives Exchange Limited (NCDEX), the other shareholders of NERL include National Bank for Agriculture and Rural Development (NABARD), the largest re-finance institution, ICICI Bank, one of the largest private sector Banks in India and State Bank of India, the largest public sector Bank in India. Such unique parentage makes it a unique proposition to provide repository services to the Indian Agricultural Market.