COMPANY

REPORT ON

DECEMBER 2024

Brief Report on NSE prepared by The Synergy Syndicate (TSS)

December 2024 www.thesynsyn.com

About NSE CMP : ₹1769
(as on 11/12/2024)

NAME NSE Market ₹430,000 Cr.

cap
INDUSTRY Financial Exchanges
BOOK VALUE 96.87

LOCATION Mumbai, India

P/B RATIO 18.26

INCORP YEAR 1992 P/E RATIO 54

WEBSITE https://www.nseindia.com/ DEBT TO

0
EQUITY

SERVICES Trading Services EV/EBITDA 25.81

Competitors BSE ROE 35%

A Brief Overview

The National Stock Exchange of India (NSE), established in 1992 and

headquartered in Mumbai, is one of the leading stock exchanges
globally. It was the first in India to offer fully automated, electronic
trading, revolutionizing the securities market. NSE provides a wide
range of products, including equities, derivatives, debt, and currency
markets, with a focus on transparency, efficiency, and security.

Known for its advanced risk management systems and cutting-edge

technology, NSE plays a key role in India's capital markets and
continues to drive financial innovation, promoting investor growth
and economic development.
 Clearing &
Equitites
Settlement

Derivatives
IPO’s

Debt Securities

SHAREHOLDING REVENUE SPLIT

Others
Others Insurance Companies
17.5%
21.9% 29.7%

Colocation Fees
13.1%

Unlisted Corporates Listing Fees Trading Services

23.4% 4.4% 65%
Individuals
25%

MANAGEMENT

Mr. Ian Desouza

Mr. Ashish Kumar Sharma
CFO
MD & CEO

Mr. Ashish Chauhan, a seasoned industry Mr. Ian Desouza is a seasoned BFSI
leader, has served as the CEO of BSE for a professional with over 26 years of experience.
decade and held key positions at Reliance He has held key roles, including CFO of Bank of
Group. He has also contributed to various Baroda, and has expertise in strategy, finance,
boards, including CDSL and prominent and operational efficiency.
educational institutions.
 MARKET SHARE INDUSTRY GROWTH

Others
6%

NSE
43%

BSE
51%

Market Overview

The securities exchange market is poised for significant

growth, with a projected increase of USD 49.6 billion between
2023 and 2028, at a CAGR of 12.1%.

Fueled by increasing demand for diverse investment

opportunities, driven by expanding securities business units
catering to institutional and individual investors.

The Indian stock market also has witnessed significant growth

over the past few decades, driven by economic reforms,
technological advancements, and increasing participation from
domestic and global investors.

India’s stock market is now among the top 10 globally in terms

of market capitalization, which surpassed $3.5 trillion in 2023.
 CONSOLIDATED BALANCE SHEET
(Amt in ₹ Cr.) (Amt in ₹ Cr.)

Particulars 2023 2024 Particulars 2023 2024

Total Equity 20,480 23,974 Total NCA 13,600 22,068

Non-
Current 414 552 Investments 8,156 10,471
Liabs

Current Current
10,386 32,580 14,022 32,072
Liabilities Assets

Total Equity
and 36,564 65,464 Total Assets 36,564 65,464
Liabilities

CONSOLIDATED INCOME STATEMENT

(Amt in ₹ Cr.)

Particulars 2023 2024

Revenue 12,765 16,433 +(28.73)%

(Expenses) (2,609) (3,609)

Profit before Adjustments 10,156 12,825 +(26.28)%

(Tax Expense) (2,540) (2,778)

PAT 7,338 8,311 +(13.25)%

+(13)%
EPS 148.5 167.8
 CASHFLOW STATEMENT SNAPSHOT
(Amt in ₹ Cr.)

Particulars 2023 2024

Profit before Tax 9,914 11,105 +(1615)%

Cash from Operations 1,734 29,744

Cash from Investing (3,217) (8,336)

Cash from Financing (2,100) (3,994)

+(291)%
Net Cash Generated 5,975 23,389

Key Takeaways from CFS

The surge in operational cash flow is driven by increased trading activity, particularly in
equities and derivatives, as investor participation grows amid a favorable economic
and regulatory environment.

Higher investing outflows likely reflect strategic investments in modernizing the

NSE’s infrastructure, including new technologies like blockchain and enhanced
cybersecurity, to support market expansion.

The rise in financing outflows suggests increased borrowings to fund growth initiatives,
such as platform enhancements and market diversification, positioning the NSE for
future opportunities.

The significant increase in net cash generated highlights the NSE's dominant position
in India's capital markets and its ability to capitalize on market growth and investor
demand.
 FINANCIALS GRAPH

Strong YOY Growth in Operating Profit

High Dividend payout,

reflecting shareholder satisfaction

Average Options Daily volume saw heavy growth

Exponentially high Profits After Tax (PAT)

 Key Operational Metrics

9.2 Cr
Investors actively trading on NSE, up
93%
Market Share in Cash Segment
44% YOY

11.43L Cr. 8th

Ranked as the 8th most successful Stock
Debt raised in FY 2024
Exchanges in the world

Valuation
No. Of Shares 247.50 Cr

Price 1769

Value of Company 437,827.5 Cr

In its recent funding round, the National Stock Exchange of India (NSE)
raised significant capital to enhance its technological infrastructure and
expand its market offerings.

The funding, secured at a valuation of approximately $15 billion,

underscores NSE's leading position in India's financial sector and its
commitment to driving innovation in capital markets.

With strategic backing from prominent investors and stakeholders, this

investment will enable NSE to strengthen its trading platforms, improve
market liquidity, and expand its global footprint.
IPO Prospect
Rumors of NSE's Upcoming IPO: The National Stock Exchange of India (NSE) is
planning its highly anticipated initial public offering (IPO), a move that could open
up significant opportunities for investors holding unlisted shares. The IPO will
offer public shares to both retail and institutional investors, marking a key
milestone in the exchange’s growth trajectory.

IPO Details Awaited: While the exact dates and offer price for the IPO are yet to
be confirmed, sources suggest the offering could involve a substantial number of
equity shares. The IPO size and timeline are still under wraps, but it is expected to
be one of the most significant public listings in India’s financial sector in recent
years.

Future Prospects
Market Expansion: Diversifying products, including derivatives and
commodities, to boost liquidity.

Technological Innovation: Investing in AI and blockchain to enhance trading

efficiency.

Global Growth: Expanding global presence through strategic partnerships.

Strategic Backing: Leveraging strong institutional support for long-term

growth.

Key News
Market Growth: NSE reported significant growth in volumes in Q1 FY25

Product Expansion: The exchange is diversifying its offerings, including

new derivative products and expanding into commodity markets.

Technological Advancements: NSE continues to invest in AI and

blockchain to enhance trading infrastructure and market efficiency.
Competitive landscape
Particulars

Market Cap ₹430,000 Cr. ₹71,458 Cr.

Revenue ₹16,433 Cr. ₹1,681 Cr.

EBITDA Margin 71% -

ROE 35% 15%

P/E Ratio 54 77

Book Value 96.8 274

EPS 169.80 57.50

CMP ₹1769 ₹4720

India’s stock exchange sector is primarily dominated by the Bombay Stock

Exchange (BSE) and the National Stock Exchange of India (NSE), with both playing
pivotal roles in the country’s financial ecosystem. BSE has a long history and
strong retail investor base, while NSE stands out for its technological
advancements and dominant position in derivatives trading.

Why NSE ?
NSE differentiates itself with its state-of-the-art trading infrastructure, offering
high-speed, automated platforms that attract institutional and retail investors
alike. Unlike its competitors, NSE has a strong focus on innovation, technological
upgrades, and expanding its product offerings, including derivatives and
commodities. Its leadership in market liquidity, coupled with robust risk
management systems, positions NSE as the preferred exchange for global and
Indian investors.
 LATEST BUZZ: NSE's Plans for IPO

The National Stock Exchange (NSE) has announced its intention to launch
an initial public offering (IPO) aimed at enhancing transparency and
accountability, rather than focusing on price discovery. According to
Sriram Krishnan, Chief Business Development Officer of NSE, the primary
goal of the IPO is to increase the exchange's accountability to the market.

The NSE is currently valued at approximately Rs 4.75 lakh crore in the

unlisted market, making it one of the most prominent exchanges in India.
With around 20,000 shareholders, NSE's shares are highly traded in the
unlisted market, where they are currently priced at around Rs 2,000 per
unit following a 4:1 bonus issue.

Krishnan emphasized that the IPO is not intended for price discovery, as
the NSE does not have a promoter and operates as a quasi-commercial
organization. Instead, the move is aimed at improving transparency, and
positioning NSE as a more accountable entity in the financial markets.

This IPO could potentially surpass Hyundai's record for the largest public
issue, further solidifying NSE's status as India's largest exchange.
 KEY HIGHLIGHTS AND OBSERVATIONS

Ranked as the 8th most successful Facilitates daily trade volumes of

leading Global Exchange ₹67,491 Crore

Caters to a vast investor base of Provides a dedicated platform

over 9 crore registered investors (NSE Emerge) for SMEs’ to raise capital
and 16.9 crore client codes

NSE Group delivered a strong Q2 FY 25 Operating profit margin remained

performance, with consolidated total healthy at 90%, indicating efficient
income surging 25% YoY to Rs. 5,023 crore. operations and cost control.

The company's net worth increased to Rs.

23,974 crore, and its risk reserve grew to Rs.
8,533 crore, bolstering its financial stability.
CONCLUSION

NSE has demonstrated strong financial performance, with significant revenue

growth and profitability. The company's diverse revenue streams, including
transaction charges, data center and connectivity fees, and listing fees, reduce
reliance on a single source. NSE's investment in cutting-edge technology has
enabled it to maintain a competitive edge and deliver efficient services.

However, the exchange faces challenges such as increasing competition from other
players offering mutual funds, SIP’s, and other services. And fintech companies,
regulatory changes, and market volatility. Despite these challenges, NSE's strong
fundamentals, technological innovation, and strategic focus position it for long-
term growth.

In conclusion, NSE, as India's leading stock exchange, offers a compelling

investment opportunity. Its strong financial performance, robust technological
infrastructure, and diversified product offerings position it well for future growth.
While the exchange faces challenges such as increasing competition and
regulatory risks, its strong fundamentals and strategic focus make it a promising
investment prospect for long-term investors.

Disclaimer: The investment report is for informational purposes only and does not constitute financial advice or a solicitation to buy or sell securities. The
content is
based on information available up to the date of this report and is subject to change. The recommendation section is left open-ended and doesn’t suggest
bias towards any side, but an overview of the opportunity analysed by the team. All investments carry risks, and individuals should consult with a financial
advisor before making investment decisions.

December 2024 www.thesynsyn.com