NSE Unlisted Shares
Buy - ₹1500.00
Sell - ₹1650.00
About NSE Unlisted Shares
1. About NSE
The National Stock Exchange of India Ltd. (NSE) is one of India’s leading stock exchanges, recognized for its substantial contribution to the development of the Indian financial markets. Established in 1992, NSE revolutionized stock trading in India by introducing electronic screen-based trading in 1994, which replaced the traditional open-outcry system. This move made trading faster, more transparent, and accessible to a broader range of investors.
NSE’s role as a pioneer in the Indian financial markets was further solidified in 2000 when it launched derivatives trading and internet-based trading, both firsts in the country. The exchange operates a comprehensive business model encompassing exchange listings, trading services, clearing and settlement operations, market data feeds, and financial education. With a focus on technology innovation and reliability, NSE has cemented its position as a leader across multiple asset classes.
As of 2018, NSE ranked second globally in terms of the number of trades in equity shares, reflecting its prominence on the world stage. Despite recent regulatory challenges, NSE remains a critical player in both the Indian stock market and global financial markets.
2. Business Divisions
NSE operates through a diverse portfolio of subsidiaries and services, ensuring a robust market infrastructure:
- NSE Clearing Limited:
As the clearing corporation of NSE, it provides clearing and settlement services for securities traded on the exchange. This division ensures efficient, secure, and timely settlement of trades, which is crucial for maintaining liquidity and market stability. - NSEIT Limited:
This wholly-owned subsidiary offers global technology solutions, including IT-enabled services, infrastructure services, and analytics. It plays a pivotal role in maintaining the technological backbone of NSE and serves clients beyond India’s borders. - NSE Indices Ltd.:
NSE Indices manages a range of benchmark indices used by market participants to gauge the performance of sectors and stocks. These indices serve as critical tools for investors, asset managers, and market analysts. - NSE Academy Limited:
This subsidiary focuses on financial education, offering courses and certifications that aim to enhance financial literacy and promote a deeper understanding of the markets. - NSE Foundation:
As part of its corporate social responsibility (CSR) efforts, NSE Foundation undertakes initiatives focused on education, healthcare, and rural development.
These subsidiaries and divisions contribute to NSE’s diversified revenue streams, expanding its influence across financial markets, technology, education, and social initiatives.
3. Financial Highlights
Here are some key financial highlights for NSE Unlisted Shares:
- Consistent Revenue Growth:
NSE’s revenue has grown significantly from ₹8,929 crore in FY2022 to ₹14,780 crore in FY2024. This growth reflects the exchange’s expanding market presence and the increasing volumes in options trading. - High Profitability Margins:
NSE consistently achieves high margins, with a gross margin of 100% and an EBIT margin of 75.59% for FY2024. These exceptional margins underscore the efficiency of NSE’s operations and its ability to generate substantial profits from its core business. - Robust Earnings Per Share (EPS):
The EPS of ₹169.82 in FY2024 demonstrates NSE’s ability to generate strong returns for its shareholders, making its unlisted shares a valuable investment option. - Strong Return on Equity (ROE):
With an ROE of 35%, NSE delivers impressive returns on shareholder equity, making it a highly attractive option for investors looking for high-growth, stable investments. - Zero Borrowings:
NSE has maintained a debt-free balance sheet, with borrowings of zero, highlighting its strong financial position and minimizing risks related to leverage. This enables the company to focus on organic growth without the burden of interest payments.
Disclaimer*This research has been conducted on available data. Investors are advised to perform their own research and due diligence before making any investment decisions. We are not responsible for any financial losses or inaccuracies in the data provided
Pros
- Market Leadership: Dominant position in India’s financial markets, handling a large portion of equity and derivative trading volumes.
- Technological Edge: High-frequency, low-latency trading systems ensure competitiveness and innovation.
- Diverse Business Model: Revenue spread across segments like clearing, settlement, and education, reducing dependency on a single market.
Cons
- Regulatory Challenges: Ongoing regulatory issues, like the co-location scam, create uncertainty around IPO and compliance.
- Dependency on Market Volatility: Revenue highly tied to market activity; downturns may impact trading volumes and earnings.
- IPO Delays: Delays in the highly anticipated IPO could affect investor sentiment and raise concerns.
