Buy National Stock Exchange; target of Rs 2050: Emkay Global Financial

Emkay Global Financial' research report on National Stock Exchange NSE reported satisfactory performance in 2QFY27 despite the impact of CAS implementation. Revenue from operations at Rs40.67bn declined ~11% qoq, led by ~16% decline in transaction charges owing to CAS implementation, but was offset by strong growth in Listing Services revenue at Rs1.5bn. Employee expenses at Rs2.2bn declined ~9% qoq, while Technology expenses were up ~6% sequentially. As a result, EBITDA at Rs30.79bn declined ~13% qoq, while EBITDA margin at 75.7% dipped sequentially. The management believes the changes in CAS, expected to go live in Dec-26, should help investors trade more, thus driving volumes.

Outlook NSE plans to launch corporate bond index futures and is awaiting RBI approval. To bake in the 2Q performance, we tweak our estimates, resulting in largely unchanged PAT over FY27-29E. We maintain BUY and Sep27E TP of Rs2,050 implying FY28E PER of ~41x. For all recommendations report, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. National Stock Exchange - 0411026 - emkay