15 Days Price Change
Summary
🚨 NSE vs BSE: Valuation Mirage\r\nDespite dominating India\'s capital markets with 9x profits and 95% share, NSE trades at a discount to BSE. With its IPO around the corner, is the market finally ready to correct this mispricing? Here\'s why NSE might be the true underdog — for now.
The buzz around the NSE IPO has ignited a key debate among investors: Is NSE (National Stock Exchange) truly undervalued, or is BSE riding the hype wave? A closer look at the numbers makes it clear — NSE's IPO could correct a long-standing valuation mismatch in India’s stock exchange space.
FY25 Snapshot:
Revenue: NSE ₹17,141 Cr | BSE ₹2,957 Cr
EBITDA: NSE ₹14,811 Cr | BSE ₹1,779 Cr
PAT: NSE ₹12,188 Cr | BSE ₹1,322 Cr
That’s a 5x to 9x outperformance across all major financial metrics.
NSE: 71% PAT margin, 86% EBITDA margin, ROE 40%, ROCE 50%
BSE: ~45% PAT margin, ~60% EBITDA margin, ROE 34%, ROCE 44%
Verdict: NSE is far more profitable, efficient, and capital-generative.
Market Share (FY25):
Cash Market: NSE ~95% | BSE ~5%
Equity Futures: NSE ~100%
Equity Options: NSE ~88% | BSE ~12%
Currency Derivatives: NSE ~93% | BSE ~7%
NSE isn’t just India’s leading exchange — it’s a global giant, ranked #1 in derivatives volume and #2 in equity trades worldwide.
|
Metric |
NSE (Unlisted) |
BSE (Listed) |
|
Market Cap |
₹5.92 Lakh Cr |
₹1.21 Lakh Cr |
|
P/E Ratio |
~49x |
~92x |
|
EV/EBITDA |
~39x |
~61x |
|
PEG Ratio |
~0.97 |
~0.80 |
Despite its superior earnings, scale, and margins, NSE is trading at lower multiples than BSE. That’s a textbook example of valuation disconnect.
Why is BSE trading at such high multiples? Here’s the likely loop:
NSE is unlisted, so retail investors buy BSE as a proxy bet.
Increased demand pushes BSE’s P/E higher.
That feeds sentiment around NSE’s perceived value.
The cycle continues — until the NSE IPO introduces price discovery.
NSE’s Growth Drivers:
BSE’s Growth Levers:
Mutual fund distribution
SME segment listings
Income from investments
FY25 PAT Growth:
NSE: +47% | BSE: +71%
3-Year CAGR:
NSE: ~32–33% | BSE: ~74–76%
While BSE’s growth rates are temporarily higher, NSE’s businesses are higher-margin, recurring, and defensible. That’s key when judging long-term value.
The upcoming NSE IPO is likely to be a market-defining event.
Here’s what it will trigger:
A benchmark valuation for Indian exchanges.
Capital rotation as funds move from BSE to NSE.
Clarity for investors, correcting the proxy-driven distortion in exchange stock prices.
Don’t just look at market cap. Dive into margins, scale, and ROE/ROCE.
NSE is a business of moats. Its dominance in derivatives and index-linked services ensures longevity.
Watch for listing-day signals. NSE’s IPO pricing will reset how we value BSE too.
Understand revenue quality. Recurring, sticky income wins in the long term.
BSE is not a bad stock — it’s just not NSE. One is a challenger. The other is the incumbent giant.
NSE’s final IPO pricing and grey market trends
Mutual fund & SME performance updates from BSE
Regulatory developments in capital markets
Growth in derivative volumes and retail participation
The numbers don’t lie — NSE is bigger, more profitable, more dominant, yet still undervalued compared to BSE. Its IPO may finally give investors a chance to buy into India’s true market infrastructure titan — at a price that reflects its real power.
The NSE IPO isn’t just a listing. It’s a reset.
📢 Stay tuned with Sharescart for exclusive unlisted stock insights, IPO coverage, and deep-dive investment analysis.
Sell or Purchase Share (Tentative Price)
| Company | Industry | Stock P/E | P/B | Company rating | MCAP (in Cr.) | Current Price |
|---|---|---|---|---|---|---|
| Pharmeasy | e-Commerce | -2.2 | 2.1 | 5463 | 8.5 | |
| Reliance Retail | Retailing | 141.5 | 23 | 698659 | 1400 | |
| Orbis Financial | Finance - Investment | 47.8 | 9.8 | 6756 | 555 |
It is a leading global provider of BPO and IT services. Hexaware Technologies Limited provides IT consulting, software development, and business process services.
Unique Features
Incorporated in 2019, The company operates a consumer healthcare app called PharmEasy that enables the home delivery of pharmaceutical products.
Unique Features
Sterlite Power began on 5th May 2015 and is headquartered in Delhi. It is a leading developer & solution provider in integrated power transmission.
Unique Features
Incorporated in 2015. Signify is into the manufacturing of electric lights and light fixtures for consumers and professionals.
Unique Features
CSK is a subsidiary brand of India Cements. This company is quite popular in India as it known for its cricket team.
Unique Features
Elcid Investments Limited was incorporated on 3 December 1981 in Mumbai. It is a Non-Banking Finance Company registered with the Reserve Bank of India.
Unique Features
STUDDS is a leading manufacturer of motorcycle accessories and helmets. They become the largest helmet manufacturer (two-wheeler) in the world.
Unique Features
Mohan Meakin manufactures alcoholic beverages such as rum, whisky, beer, etc., and non-alcoholic beverages like apple juice, mineral water, etc.
Unique Features
Orbis is recognized as a leading player in the Financial Services Industry, providing Securities Services since 2009 to FDI, Corporate, HNI's.
Unique Features
Schneider Electric President Systems Limited is a designer, manufacturer and supplier of customized enclosure systems for over 30 years.
Unique Features
How Your Money Can Grow With Us
| Pre IPO Price: 130 |
IPO Price: 334 |
Listing Price: 310 |
1 Lac Invested in ICICI Prudential pre-ipo turned into 2.3 Lac after listing.
| Pre IPO Price: 400 |
IPO Price: 661 |
Listing Price: 680 |
1 Lac Invested in ICICI Lombard pre-ipo turned into 1.7 Lac after listing.
| Pre IPO Price: 210 |
IPO Price: 290 |
Listing Price: 344 |
1 Lac Invested in HDFC Life pre-ipo turned into 1.6 Lac after listing.
| Pre IPO Price: 175 |
IPO Price: 358 |
Listing Price: 597 |
1 Lac Invested in AU Small Finance Bank pre-ipo turned into 3.4 Lac after listing.
| Pre IPO Price: 60 |
IPO Price: 225 |
Listing Price: 301 |
1 Lac Invested in RBL Bank pre-ipo turned into 5 Lac after listing.
| Pre IPO Price: 200 |
IPO Price: 806 |
Listing Price: 1069 |
1 Lac Invested in BSE pre-ipo turned into 5.3 Lac after listing.
| Pre IPO Price: 60 |
IPO Price: 150 |
Listing Price: 261 |
1 Lac Invested in CDSL pre-ipo turned into 4.3 Lac after listing.
| Pre IPO Price: 545 |
IPO Price: 1101 |
Listing Price: 1990 |
1 Lac Invested in Nazara Tech pre-ipo turned into 3.6 Lac after listing.
| Pre IPO Price: 280 |
IPO Price: 300 |
Listing Price: 616 |
1 Lac Invested in Dmart Avenue pre-ipo turned into 2.2 Lac after listing.
| Price in 2019: 450 |
Current Price: 3250 |
1 Lac Invested in Reliance Retail Ltd pre-ipo turned into 7.2 Lac.
| Price in 2019: 1100 |
Current Price: 6350 |
1 Lac Invested in Tata Technologies pre-ipo turned into 5.7 Lac.
