Company Presentation
National Stock Exchange (NSE) Overview and Key Details:
Business Overview: NSE, established in 1992, is India's largest stock exchange and among the top global exchanges by trading volume. It provides integrated trading, clearing, settlement, and surveillance services across equities, futures and options, debt, and currency markets. NSE's indices include Nifty50 and Nifty Bank, among others. It also has ancillary businesses such as data analytics, co-location services, investor education, and index licensing. The exchange commands over 90% market share in equity derivatives and is known for its tech-first approach and zero-leakage infrastructure.
Investment Rationale: The investment rationale highlights NSE's market leadership as a monopoly in equity derivatives and top player in equities. It mentions its financial strength, with over ₹8,000 Cr PAT and 70%+ EBITDA margins. The potential for an upcoming IPO in FY25-26, a regulatory moat due to SEBI regulation, and a tech edge based on automated and scalable infrastructure are also highlighted.
Key Risks: Potential regulatory challenges include SEBI investigations into co-location and governance. New SEBI guidelines in Nov-24 on FNO trading might also impact trading volumes and revenue. There is also a risk of IPO delay pending clearance from SEBI, limited liquidity pre-IPO, and potential valuation pressure due to current IPO optimism.
IPO Timeline & Exit Options: The IPO was deferred due to governance issues and a SEBI probe. Governance structure is improving, suggesting a potential IPO in FY26. Exit options include private secondary transactions, institutional buybacks, and pre-IPO placements.
UnlistedZone View: NSE represents a compelling unlisted investment opportunity due to its market monopoly, consistent profitability, and cash-rich operations. Even with regulatory uncertainties, its fundamentals are solid. At approximately 48x P/E (FY24E), NSE presents better value compared to BSE, making it an attractive investment.
Financials and Valuation: In FY24, NSE reported revenue of ₹14780 Cr, EBITDA of ₹11611 Cr, and PAT of ₹8406 Cr. EPS stood at ₹169.82. The last deal price as of April 24, 2025, was ₹1,625/share, implying a market cap of ₹4.02 Lakh Cr. Its P/E ratio (TTM FY24) is ~47.85x, which is a discount to its listed peer, BSE Ltd (P/E 93.8x). Revenue grew at a 38%+ CAGR from FY21-FY24, with strong operating margins and minimal debt.
Shareholding Pattern: The shareholding pattern is as follows: Foreign Holding (36.45%), Insurance Companies (19.35%), Individuals (16.20%), Corporates- Unlisted (15.47%), Financial Institutions/Banks (4.57%), Venture Capital Fund/AIFs (3.65%), Others (2.72%), and Corporates-Listed (1.58%).
Disclosures: Information comes from MCA ROC filings, management presentations, and media reports. UnlistedZone & affiliates may have holdings in NSE. This report is for informational purposes only and is not investment advice. Investors should conduct their own due diligence.
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Unlisted shares are stocks of companies that are not listed on any stock exchange, meaning they are not publicly traded. These shares are typically available for trade in the private market through brokers, and can offer unique investment opportunities.
You can buy unlisted shares through a broker or platform that specializes in unlisted share transactions. We provide a secure and easy way to purchase unlisted shares from top companies, ensuring a smooth transaction process.
The share prices of unlisted companies can fluctuate based on various factors like market demand, company performance, and private transactions. You can check the latest share prices for unlisted companies on our website for real-time updates.
Unlisted shares can offer higher growth potential, as they are typically not subject to the same market volatility as listed shares. However, they come with higher risk due to limited liquidity and availability of information. It's important to research thoroughly and consult experts before investing.
To sell unlisted shares, you can connect with a broker or platform that facilitates the sale of private stocks. We help investors buy and sell unlisted shares with ease, ensuring that your transaction is handled professionally and securely.
Yes, unlisted shares can eventually be listed on a stock exchange through an Initial Public Offering (IPO). This process allows the company to offer its shares publicly and be traded on major exchanges, potentially increasing liquidity and visibility.
Gains from unlisted shares are subject to capital gains tax in India. Short-term capital gains (if held for less than 24 months) are taxed at your applicable income tax rate, while long-term capital gains (if held for more than 24 months) are taxed at 20% with indexation benefits. Always consult a tax advisor for precise tax implications.
The value of unlisted shares is typically determined by private transactions, financial reports, and market demand. We provide the latest updates on share prices of unlisted companies, giving you the most accurate valuation available.
The minimum investment for unlisted shares can vary depending on the company and broker. Generally, the minimum investment is higher than for listed stocks, but we provide detailed information to help you make the best investment decisions.
Yes, unlisted shares may pay dividends if the company has declared them. However, since these companies may be in their growth stage, dividend payments are not always guaranteed. It's important to check the company's financial health before investing.
It's important to conduct thorough research on the company's financials, management, market potential, and overall business model. You can also seek professional advice from experts to help you choose unlisted shares with strong growth prospects.
Gains from unlisted shares are subject to capital gains tax in India. Short-term capital gains (if held for less than 24 months) are taxed at your applicable income tax rate, while long-term capital gains (if held for more than 24 months) are taxed at 20% with indexation benefits. Always consult a tax advisor for precise tax implications.
