NSE shares are ‘undervalued’, fair value at ₹4,000, Axis Securities says

NSE shares are trading at a reasonable valuation in comparison to its domestic listed peers like BSE and MCX, brokerage firm Axis Securities wrote in a note accessed by CNBC-TV18.”Although NSE and other Indian indices collectively at a higher valuation, this is justified by higher growth expectations and emerging market dynamics, whereas the US markets trade at lower multiples reflecting stability and scale,” the Axis Securities note said.

Axis Securities believes that the fair value of NSE in the unlisted market could be around ₹4,000 per share, based on the sector price-to-earnings multiple of 83 and NSE’s Earnings Per Share (EPS) of $49.2.
“With the current price near ₹2,250, the stock appears undervalued, making it a potentially attractive entry point,” Axis Securities said. While the brokerage does anticipate minor pullbacks or corrections, particularly in response to shifts in market sentiment or regulatory changes, the overall outlook remains positive, barring any major external disruptions.

The brokerage is anticipating NSE to get its IPO approval by the third quarter of the current financial year, the filing to officially take place by the fourth quarter, and the issue being launched either in the first or second quarter of financial year 2027. The IPO will list on BSE and while the size is unknown, it could turn out to be one of the largest in Indian history.