PL Capital has initiated coverage on National Stock Exchange of India (NSE) with an ‘Accumulate’ rating and a ₹1,950 target price, valuing the exchange at 35 times its estimated FY29 earnings.

The brokerage highlighted NSE’s dominant position in India’s capital markets. According to its analysis, NSE held more than 93% of the cash-market segment and nearly 100% of stock and index futures volumes in YTD FY27.

However, NSE’s share of index options has declined to around 65% in YTD FY27 from about 97% in FY24. PL Capital attributed the decline partly to regulatory changes involving weekly expiries, the closing auction session and proprietary trading rules.

NSE shares were listed at ₹1,800, above the IPO issue price of ₹1,785, and subsequently moved higher. The exchange’s market capitalisation reached around ₹4.65 lakh crore, placing it among India’s most valuable listed companies.

PL Capital expects NSE’s operating revenue growth to moderate to an 11% CAGR between FY26 and FY29, compared with 25% between FY21 and FY26. Transaction income accounted for 79% of operating revenue in FY26.

The brokerage expects EBITDA margins to recover towards 76% by FY29 as exceptional costs fade, while projecting an 11% CAGR in profit after tax.

Other brokerages have also published targets for NSE. Macquarie has an ‘Outperform’ rating with a ₹1,965 target, while Emkay Global has a ₹2,050 target. Asian Markets Securities has set a ₹2,170 target.