Analysis on FY2023 Financials – NSE Unlisted Shares

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A Comprehensive Analysis of FY23 Financial Performance for NSE Unlisted Shares

One of India’s top stock exchanges, the National Stock Exchange (NSE), displayed a spectacular financial success in FY23. NSE unlisted shares are trading at around Rs.3300/sh (on 17th Aug’23) in unlisted market.

This article will examine the NSE’s financials in depth, highlighting the crucial elements that have contributed to its expansion and contrasting its valuation with that of the Bombay Stock Exchange (BSE). Growth in Revenue: An Increase in FnO Volumes

NSE reported revenue of 12765 Cr in FY23, up significantly from 8873 Cr in FY22.

The significant expansion in Futures and Options (FnO) volumes has been the main factor in this revenue gain. 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.

Fiscal YearEquity (Index and Stock) Volume (Lk Cr)Currency Volume (k Cr)
FY201441
FY212750
FY227187
FY23153155
Note that “Lk Cr” refers to lakh crores and “k Cr” to thousand crores.

Also Read: Why NSE Business Model is excellent?

Management of Expenses: Increasing Operational Costs

NSE’s expenses went from 2008 Cr in FY22 to 2608 Cr in FY23, which is a rise in expenses. Despite an increase in business volumes, expenses have increased. This increase could be related to a number of things, including growth plans, technological advancements, or regulatory charges, all of which need to be carefully considered.

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

NSE’s Profit After Tax (PAT) for FY23 stood at 7355 Cr, greater than the 5198 Cr recorded in FY22, as a result of the excellent revenue growth and minimal increase in expenses. 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.

Announcement of Dividends: A Benefit for Shareholders

Nearly twice as much as the 42 per share dividend announced in FY22, NSE has announced a payout of 80 per share for FY23. The exchange’s dedication to compensating its shareholders is amply demonstrated by this rise in dividend payout, which also shows the exchange’s sound financial condition.

Analysis: NSE vs. BSE

In terms of value, NSE is offered in the unlisted market for Rs. 3300 per share at a Price to Earnings (P/E) ratio of 22x. BSE, in contrast, is offered at a 35x P/E. Because NSE’s P/E ratio is lower than BSE’s, it may be undervalued, making unlisted NSE shares an appealing investment prospect.

Conclusion

The financial results of NSE in FY23 show that the company is a healthy and expanding enterprise. A good financial situation is shown by the considerable increase in revenue, the rise in expenses, the increase in PAT, and the increase in EPS. Investors are further drawn in by the NSE unlisted shares’ competitive valuation as compared to BSE. However, as with any investment, potential investors should conduct thorough research and consider their risk tolerance before investing in NSE unlisted shares.

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Also Read: All you need to know about NSE business model

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