NSE Unlisted Shares:

A Comprehensive Analysis of FY23 Financial Performance

The National Stock Exchange (NSE), one of India's leading stock exchanges, has shown a remarkable financial performance in FY23. This article will delve into the details of NSE's financials, highlighting the key factors contributing to its growth and comparing its valuation with the Bombay Stock Exchange (BSE).

Revenue Growth: A Surge in FnO Volumes

In FY23, NSE reported a revenue of 12765 Cr, a significant increase from the 8873 Cr in FY22. The primary driver for this revenue growth has been the substantial increase in Futures and Options (FnO) volumes. The surge in FnO volumes indicates a growing interest among investors in derivative trading, which has proven to be a lucrative business segment for the exchange.

[Please note that "Lk Cr" stands for Lakh Crores and "k Cr" stands for Thousand Crore]

Expense Management: An Increase in Operational Costs

On the expense front, NSE's expenses increased from 2008 Cr in FY22 to 2608 Cr in FY23. This rise in expenses, despite the increase in business volumes, could be attributed to various factors such as expansion initiatives, technology upgrades, or regulatory costs, which need to be examined in detail.

Profit After Tax (PAT) and Earnings Per Share (EPS)

Due to the impressive revenue growth and not much rise in expenses, NSE's Profit After Tax (PAT) for FY23 stood at 7355 Cr, higher than the 5198 Cr reported in FY22. This increase in PAT, coupled with an increase in Earnings Per Share (EPS) from 102 in FY22 to 148 in FY23, indicates a positive trend in profitability. This is a positive sign for investors, indicating better profitability per share.

Dividend Announcement: A Reward for Shareholders

NSE has announced a dividend of 80 per share for FY23, almost double the 42 per share announced in FY22. This increase in dividend payout is a clear indication of the exchange's commitment to rewarding its shareholders and reflects its strong financial health.

Valuation: NSE vs BSE

When it comes to valuation, NSE is available at a Price to Earnings (P/E) ratio of 22x at Rs.3300 per share in the unlisted market. In comparison, BSE is available at a P/E of 35x. This lower P/E ratio for NSE suggests that it is undervalued compared to BSE, making NSE unlisted shares a potentially attractive investment opportunity.

Conclusion

The financial performance of NSE in FY23 paints a picture of a robust and growing business. The significant increase in revenue, coupled with a rise in expenses, and increased PAT and EPS all point towards a strong financial position. The attractive valuation of NSE unlisted shares, compared to BSE, further adds to the appeal for investors. However, as with any investment, potential investors should conduct thorough research and consider their risk tolerance before investing in NSE unlisted shares.

FAQs

1. How can I buy unlisted shares in NSE?

Ans: Unlisted shares can be bought through UnlistedZone's website or by dropping us an email at sales@unlistedzone.com.

2. Is it good to buy NSE unlisted shares?

Ans: Investing in unlisted shares can offer high returns, but it also comes with risks. Investors should thoroughly research and consider their risk tolerance before investing. However, considering NSE cash generation business with monopoly status in FnO it is considered as good investment.

3. How do I find unlisted shares?

Ans: Unlisted shares are not traded on the regular stock exchanges. They can be found through UnlistedZone's website.

4. How do I sell unlisted shares?

Ans: Unlisted shares can be sold through the UnlistedZone's website. The process may take longer than selling listed shares due to the lack of a centralized marketplace.

https://unlistedzone.com/shares/nse-india-limited-unlisted-shares/