NSE shares gain as Jefferies, other brokerages remain bullish after Q2 results. What lies ahead?

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ETMarkets.com

Along with the Q2 results, NSE announced that its board has approved the divestment of up to 40% stake in National Coal Exchange of India Limited.

NSE announced its first set of quarterly results after debuting on the stock market in the post-market hours of Tuesday. The shares of the company rose marginally to Rs 1,824.90 apiece on the BSE on Wednesday morning.

Its consolidated revenue from transaction charges rose 9% YoY to Rs 3,035 crore in Q2 FY27, from Rs 2,789 crore in Q2 FY26, driven by higher trading volumes in the cash market and equity options segments.

The stock exchange’s cash market trading segment recorded an average daily traded volume (ADTV) of Rs 1.18 lakh crore during the quarter under review, marking a 24% increase YoY. The ADTV for equity options, measured by premium value, rose 3% YoY to Rs 47,977 crore. Meanwhile, the ADTV for the equity futures segment stood at Rs 1,24,574 crore during the quarter.

Also Read | NSE Q2 Results: Profit jumps 23% to Rs 2,578 crore, revenue rises 9%

Along with the Q2 results, NSE announced that its board has approved the divestment of up to 40% stake in National Coal Exchange of India Limited, its wholly-owned subsidiary. The proposed divestment will be carried out through a secondary sale of equity shares in one or more tranches.

NSE said further disclosures will be made once the terms of the proposed transaction are finalised or upon the occurrence of any further disclosable event.

Jefferies on NSE share price

Jefferies hiked its target price for the shares of NSE to Rs 2,125 apiece from Rs 2,085 apiece, while maintaining its ‘Buy’ call on the stock. The latest target price implies nearly 18% upside potential.

The international brokerage said the company’s strong cash equities volumes were positive, although equity futures trading remained weak. It kept its FY27-28 EPS estimates largely unchanged, as higher equity options ADTO in the ongoing third quarter of FY27 is offset by lower other income. “With regulatory headwinds in the past, we expect a 15.6% revenue CAGR over FY27-29. Further, NSE is adding new growth levers, which could add 15% to FY30 EPS. Along with 200 bps margin expansion, we estimate 17.6% EPS CAGR through FY29,” it said.

Emkay on NSE share price

Emkay Global Financial Services has a ‘Buy’ rating on the shares of NSE with a target price of Rs 2,050 apiece, implying around 14% upside potential from the stock’s previous closing price of Rs 1803.80 apiece on BSE.

The domestic brokerage said the prospective changes to CAS, which are expected to go live in December this year, may help drive trading volumes for the stock exchange, ET Now reported. It added that the company reported a satisfactory performance in Q2 despite CAS jitters.

NSE share price

NSE shares made their much-awaited market debut on September 24, listing at Rs 1,800 apiece on BSE. This marked a premium of less than 1% over the IPO price of Rs 1,785. Within an hour of the muted debut, the shares jumped over 5% from the IPO price to hit a high of Rs 1,878, pushing the market capitalisation as high as Rs 4.64 lakh crore, before the stock began to decline.

Shares of NSE dropped to Rs 1,640 apiece recently, their lowest level since listing. It recovered most of the losses later to rise above listing price, closing at Rs 1,803.80 apiece on BSE on Tuesday before the release of the results.