From Financialexpress · Oliviya Kunjumon · · 1m
Jefferies raises NSE target by 18% with 15% premium over BSE
Jefferies assigns Rs 2,125 target to NSE, citing 15% valuation premium over Bse.
In brief
Jefferies assigns Rs 2,125 target to NSE, citing 15% valuation premium over Bse. Jefferies maintains Buy on NSE with Rs 2,125 target, seeing 18% upside and 15% valuation premium over BSE. Originally reported by Financialexpress.
Jefferies maintains Buy on NSE
Jefferies has raised NSE's price target to Rs 2,125 from Rs 2,085, indicating 18% upside potential.
“In-line Results; Valuations Do Not Reflect NSE’s Moats”
NSE's non-trading revenue growth
NSE's non-transaction revenue grew 16% year-on-year, led by listing services and market data.
“Sep’26 qtr. operating revenue grew 11% y-y, with non-transaction revenue growing faster (16% y-y), led by listing, data feed, and clearing services”
Cash market activity supports NSE
Cash market turnover increased 24% year-on-year, driving 30% rise in cash transaction revenue.
“Average daily traded turnover (ADTO) in cash equities increased 24% YoY”
Technology spending rises
Technology spending climbed 23% year-on-year, with employee costs rising 18%.
“Operating expenses, excluding one-off items, increased 10% YoY in the September quarter”
Jefferies assigns 15% valuation premium
Jefferies cites NSE's revenue diversification, margins and dividend yield for 15% premium over BSE.
“Price target of Rs 2,125 is based on 35x Dec-28e EPS, a c.15% premium to BSE due to better diversification, margins, and dividend yield”
NSE's growth outlook
Jefferies expects NSE's operating revenue to grow at 15.6% CAGR through FY29.
“We expect operating revenue to grow at a compound annual growth rate (CAGR) of 15.6% between FY27-29”
Jefferies' target rationale
Jefferies maintains Rs 2,125 target based on 35x December 2028 EPS with 15% premium over BSE.
“Price target of Rs 2,125 is based on 35x Dec-28e EPS, a c.15% premium to BSE due to better diversification, margins, and dividend yield”
The bottom line
Jefferies maintains Buy on NSE with Rs 2,125 target, seeing 18% upside and 15% valuation premium over BSE.
