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Financial Analysis

NSE, an unlisted company, shows excellent Q1FY21 numbers

National Stock Exchange, the most sought unlisted share on 07.08.2020 has given its first-quarter results for FY20-21. A copy of the results is available with UnlistedZone. On examination, the results are outstanding.

Key Highlights
1. NSE has shown a robust revenue growth of 38% YoY and 24% QoQ. It has clocked revenue of 1257 Crores in Q1FY21 as compared to 939 Crores in the same period last year.
2. Expenses are up by just 2.7% in Q1FY21 as compared to last year in the same period.
3. NSE has clocked a PAT of 706 Crores in Q1FY21 as compared to 425 Crores last year.
4. In the first quarter, the NSE has clocked an EPS of 14.
5. Trading services during the first quarter saw tremendous growth as a lot of retail investors participated in the market.

Segment Results (in Crores)

Revenue Segment 30.06.2020 31.03.2020 30.06.2019
Trading Services 934 839 625
Clearing Services 100 105 83
Data feed Services 29 24 29
Index Licensing Services 34 34 25
Total 1097 1002 762

Covid-19 Impact
The Coronavirus (COVID-19) outbreak is an unprecedented global situation, declared as a ‘pandemic’ by the World Health Organisation. Based on the Group’s current assessment, the impact of COVID-19 on its operations and the resultant financial performance except for its education and E-learning business is not likely to be significant.

Valuation
If we give a 25% growth in the bottom line for FY20-21, NSE can easily fetch an EPS of 48 this year. Currently, it is trading at 1150 in the unlisted market. Accordingly, the P/E based on FY21 earning would come around 24. In the listed segment, BSE currently trading at P/E of 15. With NSE almost 6x more trading volume than BSE, it can easily command a P/E of 30 for fair value. If we give P/E of 30 to NSE, the fair value comes out to be ~1480.

Results Link.

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