Investing in the stock exchange in India seems like being on a thrilling roller coaster ride. It can be exciting and thrilling and can also leave you scared or amazed at the same time. No matter which company you invest in, you always want a high return on your investment. Today, NSE, the largest stock exchange in India, has occupied the headlines for recording a 35% CAGR (Compound Annual Growth Rate) growth in revenue and sales.
Now, this is a big opportunity for potential investors to invest in NSE unlisted shares, as the company has shown positive growth in the last three years and, this time, a high CAGR in its revenue. Now, the question most potential investors ask is - how does this CAGR growth bring multibagger returns for investors? In this blog, we will talk about NSE's recent 35% CAGR growth and how much investors can expect to return by investing in NSE pre-IPO stocks. Let's get started now.
NSE Q1 Profit Jumps 9% To Rs. 1,844 Crore
On July 27, NSE reported a net profit of Rs. 1,844 crore on a consolidated basis for Q1 FY24. The profit surged by 9% on a year-on-year (YoY) basis. The NSE's consolidated income from operations came in at Rs. 2,987 crore for Q1 FY24, up by 13% YoY.
In a press release, NSE said that apart from trading revenue, the revenue from operations was also supported by other revenue lines, which include index services, data services, and colocation services. The company also informed that it contributed Rs. 7,889 crores to the exchequer during the quarter, of which STT (Securities Transactions Tax) consisted of Rs. 6,114 crores, a stamp duty of Rs. 5,003 crores, GST of Rs. 475 crores, income tax of Rs. 225 crores, and SEBI Rs. 275 crores.
NSE's Income From Operations
NSE's income from operations stood at Rs. 11,856 crores in FY23 compared to Rs. 8,313 crores in the corresponding period of the previous year. So, the total revenue of the company stood at Rs. 12,765 crores, a growth of 44% on a yearly basis, as per the press release.
Further, on a consolidated basis, earnings per share surged to Rs. 3,726 in Q1 FY 24 from Rs. 34.13 in Q1FY 23. On a trading volume basis, the cash market recorded an average daily traded volume (ADTVs) of Rs. 58,593 crores, up 4% YoY. On a standalone basis, NSE's total operating revenue grew 14% YoY to Rs. 2,833 crores. At the operating EBITDA level, NSE posted an EBITDA margin of 69% for Q1 FY24 against 77% in the corresponding quarter of the previous year.
How Can NSE’s CAGR Growth Bring Muti-bagger Returns For Investors?
The CAGR growth of NSE offers potential investors an opportunity to get multi-bagger returns via the CAGR of their investment. Here is how you can get muti-bagger return:
Investors must select the individual stocks listed on the NSE that have a potential for high CAGR growth. You will have to research the company's financials and competitive position in the market.
You just know that multibagger returns generally require a long-term investment horizon. Investors must be prepared to hold their investment for an extended period (several years) to let the power of CAGR affect the return rate.
Dividend reinvestment is another factor that can bring multibagger returns for investors. You can reinvest dividends earned from stocks listed on the NSE, as it can enhance the CAGR effect. This way, investors can accelerate the growth of their investments.
There are many other ways through which NSE's growing CAGR can bring multibagger returns for you as an investor.
Invest in NSE Unlisted Shares With Stockify
Beginning its operations in 1994, NSE is the world's latest derivative exchange by trading volume as per the statistics by the Future Industry Association (FIA) for the year 2022. The company ranked third in the world in the cash equities segment. Moreover, NSE also ranked as the largest stock exchange in India in terms of total and daily average turnover for inquiry shares every year since 1995, as per SEBI data. As the company has been growing since its inception, it is a golden opportunity for investors to buy NSE unlisted shares to get a high ROI. Connect with expert brokers at Stockify today.
FAQS
What are outstanding shares of NSE?
Ans. The total outstanding shares of NSE as of March 31, 2023 were 50 crores. And the valuation of NSE in the unlisted share market is Rs. 1,85,000 crores. This valuation of the company in the last three years surged by 3x.
What is the price of NSE pre-IPO stocks in India?
Ans. The NSE unlisted share price today is Rs. 3,550 per equity share. However, the prices keep on fluctuating based on the market trends and the company's performance.
How do I check the daily prices of NSE pre-IPO shares?
Ans. You can check the prices of NSE unlisted shares or other pre-IPO companies' shares at Stockify. We update the prices daily per market fluctuations and the company's performance. You can stay tuned with us to get regular updates.
How profitable are NSE unlisted stocks?
Ans. The company grew 3x in the past three years, and its profit rose 31% to Rs. 2,067 crore in the March quarter this year. So, it will be a highly profitable investment for potential investors.
Why should I prefer Stockify for trading?
Ans. Stockify is a prominent online stock broking company helping potential investors with buying and selling unlisted shares. We have a team of expert brokers who can guide you through the buying and selling of unlisted stocks. Connect with us today.
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