NSE shares gain as Jefferies initiates with Buy rating, sees 16% upside

Shares of the National Stock Exchange of India (NSE) were trading in the green on Thursday, October 29, after global investment firm Jefferies initiated coverage on the stock with a ‘Buy’ rating, citing its market leadership, diversified revenue streams and new growth opportunities.

Jefferies has set a target price of ₹2,085 on the stock, implying an upside of more than 16%.

It expects NSE to deliver a revenue compound annual growth rate (CAGR) of 15% over FY27-FY29, as the exchange navigates regulatory headwinds and benefits from structural growth in India's capital markets.

The brokerage estimates a 16% earnings CAGR through FY29, supported by revenue growth and an estimated 200 basis points of margin expansion.

New growth levers could boost FY30 earnings

Jefferies believes NSE's emerging growth opportunities could provide a further boost to earnings, with new initiatives potentially adding 15% to its FY30 estimated earnings per share (EPS).

The brokerage believes the exchange's diversified business profile and ability to benefit from market volatility provide additional support to its growth outlook.

The brokerage's target price of ₹2,085 is based on 35 times estimated December 2028 earnings.

Jefferies' positive stance rests on NSE's market leadership, structural growth opportunities and potential earnings expansion, with the brokerage expecting the exchange to sustain healthy growth despite regulatory challenges.

NSE shares were trading 0.7% up at ₹1790.20 as of 10.45 am on Thursday.

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