Business · India Bureau
Macquarie, PL Capital initiate NSE coverage with bullish outlook
Two major brokerages have begun coverage of the National Stock Exchange with price targets suggesting meaningful upside. Analysts argue the exchange's valuation is justified on a growth-adjusted basis relative to global peers.
LSN India ·
Macquarie and PL Capital have initiated research coverage on NSE, with both firms projecting significant gains from current levels. The brokerages have set price targets that imply upside of up to 9 percent, signaling confidence in the exchange operator's near-term prospects.
Macquarie's analysis suggests that at its target price, NSE would trade at a price-to-earnings growth (PEG) multiple of 2.5x, a valuation metric that aligns closely with comparable exchanges globally. This assessment indicates that the market premium attributed to NSE appears reasonable when adjusted for growth expectations, according to the brokerage's research.
The initiation of coverage by both firms reflects growing investor interest in India's premier exchange, which has expanded its product offerings and market participation in recent years. The analyst views suggest that current valuations do not fully reflect the exchange's growth potential relative to international counterparts with similar business profiles and expansion trajectories.
Investor sentiment toward NSE has remained constructive, with the exchange benefiting from sustained retail participation and institutional investment flows across Indian capital markets. The new coverage adds to ongoing assessments of the exchange's positioned amid India's deepening financial markets infrastructure.