Largest Exchange in the World:- NSE India commands 100% market share in the derivative segment in India and is the largest exchange in the world in derivative segment. NSE earns more than 90% of its revenues through derivative segment.
Revenue Growth:- In FY23, Revenues of the company has shown a growth of 42.7%. This growth is mainly attributed to the rise in the volumes in the derivative segment
Profit Margins:- The net profit margin of NSE India is by far the best not just in the industry but compared to any other exchange in the world. In FY23, the net profit margin of the company was 62%. The average 5-year Net Profit Margin of the company is 59.8%
Return Ratios:- The ROE of the company stands at very healthy 32.3% in FY23 and shown a growth of 9.3% compared to FY22
Investment Thesis:- Being the largest exchange in the world, NSE India is available at P/E of 23.9 vs BSE India which is available at a P/E of 93.3. NSE India is way ahead of BSE in terms of Revenue, Profits, Margins and Market Share and still is available at reasonable valuations
Celebrity Investors: Big Institutions Betting Big on Company's Stock:- Life Insurance Corporation of India, SBI and Stock Holding Corporation of India holds a significant chunk of stake in NSE India further validating its strong business model
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