NSE shares undervalued, says Axis Securities; pegs fair value at this price
Axis Securities
. The stock also trades at a relatively reasonable valuation when compared to its listed peers, BSE and MCX.
NSE's current valuation
With an earnings per share (EPS) of 49.2 and the sector trading at a price-to-earnings (P/E) multiple of 83, NSE's fair value is estimated to be around Rs 4,000, indicating significant upside from current levels.
However, NSE and other Indian indices are collectively at higher valuation (PE), Axis noted. "This is justified by higher growth expectations and emerging market dynamics, whereas US markets trade at lower multiples reflecting stability and scale," it said.
NSE's share price has remained stable with steady growth and limited volatility. Axis said that the only significant dip occurred in 2023, driven by global recession fears, rate hikes, and ongoing geopolitical tensions. "Apart from this, the price trajectory has been largely unaffected," the note said.
Share price outlook
While minor pullbacks or corrections may occur in response to shifts in market sentiment, regulatory changes or major external disruption, the overall outlook remains positive in Axis' view.
Regulatory impact on NSE
In late 2024, SEBI tightened derivatives rules, cutting NSE's F&O volumes and revenue by up to 40%.
Sebi via its October 1, 2024 circular had introduced measures to strengthen the equity index derivatives framework. Among the measures introduced by Sebi were limiting the weekly expiry to just one benchmark per exchange. The market watchdog also introduced an additional margin of 2% of the contract size on all short option contracts to curtail speculative trading.
In July 2025, a ban on Jane Street led to a drop in options trading, though volumes should recover, Axis said.
Read More:
Explained: What is Jane Street and how it made Rs 36,500 crore profit by gaming Dalal Street
NSE's initial public offering is one of the most anticipated public issues. The exchange has grappled with governance issues, which has delayed its IPO despite a Rs 643 crore settlement.
The issue is expected by mid-2026, Axis said.
SEBI also demands stronger cyber security and data privacy, prompting system upgrades.
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