NSE share price: PL Capital roots for capital market goliath, sets target of Rs 1,950
PL Capital initiated coverage on NSE with an 'accumulate' rating and Rs 1,950 target. Here's what it expects for revenue, margins and earnings through FY29.
- Sep 24, 2026,
- Updated Sep 24, 2026 2:21 PM IST
PL Capital has initiated coverage on the National Stock Exchange of India Ltd (NSE) with an 'accumulate' rating and a target price of Rs 1,950, based on 35 times FY29E price-to-earnings. It said NSE remains the dominant player in the exchange landscape, with more than 93 per cent share in the cash market and about 100 per cent share in stock and index futures in YTDFY27, supported by liquidity, technology and a broad product suite.
At the same time, PL Capital said NSE’s share in index options has fallen to about 65 per cent in YTDFY27 from around 97 per cent in FY24 and 72 per cent in FY26. The brokerage attributed this to regulatory curbs on weekly expiries, the introduction of the closing auction session (CAS) and proprietary trading rules, which it said have also reduced overall industry volumes.
Shares of NSE were listed on Thursday, September at Rs 1,800 and rose to Rs 1,878 per share in the initial few minutes, taking the overall gains to 5 per cent above the IPO price of Rs 1,785. It market capitalization rose to Rs 4.65 lakh crore, making it the 10th most valued company in India, ahead of Hindustan Unilever Ltd (HUL).
PL Capital said NSE’s revenue grew at a 25 per cent CAGR between FY21 and FY26, but it now expects 11 per cent CAGR over FY26-29E because of the shrinking share in index options. It said transaction income made up 79 per cent of operating revenue in FY26, while segments such as listing services, colocation, data feed and index licensing are expected to grow at 14 per cent CAGR over FY26-29E, compared with 9 per cent for transaction income. It expects operating revenue to grow at 11 per cent CAGR.
PL Capital said EBITDA margin, which fell to 71.3 per cent in FY26 from 77.8 per cent in FY25 due to settlement payments in pending legal cases, should recover to 76 per cent by FY29E as one-off costs fade. It expects PAT to grow at 11 per cent CAGR over FY26-29E, with FY29E return on equity at 35 per cent. The report said NSE’s IPO values it at Rs 4.4 lakh crore, or 32 times FY29E earnings, and added that the valuation largely captures the premium.
Not only PL Capital, other brokerages have also initiated coverage on NSE. Overseas brokerage firm Macquarie gave it an 'outperform' rating with a target price of Rs 1,965. Emkay Global Financial Services also initiated coverage on it with a target price of Rs 2,050 on the stock. Asian Markets Securities has a target price of Rs 2,170 on NSE in its initiating report.
PL Capital has initiated coverage on the National Stock Exchange of India Ltd (NSE) with an 'accumulate' rating and a target price of Rs 1,950, based on 35 times FY29E price-to-earnings. It said NSE remains the dominant player in the exchange landscape, with more than 93 per cent share in the cash market and about 100 per cent share in stock and index futures in YTDFY27, supported by liquidity, technology and a broad product suite.
At the same time, PL Capital said NSE’s share in index options has fallen to about 65 per cent in YTDFY27 from around 97 per cent in FY24 and 72 per cent in FY26. The brokerage attributed this to regulatory curbs on weekly expiries, the introduction of the closing auction session (CAS) and proprietary trading rules, which it said have also reduced overall industry volumes.
Shares of NSE were listed on Thursday, September at Rs 1,800 and rose to Rs 1,878 per share in the initial few minutes, taking the overall gains to 5 per cent above the IPO price of Rs 1,785. It market capitalization rose to Rs 4.65 lakh crore, making it the 10th most valued company in India, ahead of Hindustan Unilever Ltd (HUL).
PL Capital said NSE’s revenue grew at a 25 per cent CAGR between FY21 and FY26, but it now expects 11 per cent CAGR over FY26-29E because of the shrinking share in index options. It said transaction income made up 79 per cent of operating revenue in FY26, while segments such as listing services, colocation, data feed and index licensing are expected to grow at 14 per cent CAGR over FY26-29E, compared with 9 per cent for transaction income. It expects operating revenue to grow at 11 per cent CAGR.
PL Capital said EBITDA margin, which fell to 71.3 per cent in FY26 from 77.8 per cent in FY25 due to settlement payments in pending legal cases, should recover to 76 per cent by FY29E as one-off costs fade. It expects PAT to grow at 11 per cent CAGR over FY26-29E, with FY29E return on equity at 35 per cent. The report said NSE’s IPO values it at Rs 4.4 lakh crore, or 32 times FY29E earnings, and added that the valuation largely captures the premium.
Not only PL Capital, other brokerages have also initiated coverage on NSE. Overseas brokerage firm Macquarie gave it an 'outperform' rating with a target price of Rs 1,965. Emkay Global Financial Services also initiated coverage on it with a target price of Rs 2,050 on the stock. Asian Markets Securities has a target price of Rs 2,170 on NSE in its initiating report.