Shares of BSE Ltd surged 3% in Friday’s trading session as the company’s net profit doubled to ₹220 crore for the quarter ended December 2024, with revenue increasing by 94% to ₹835.4 crore.
Closing 2.54% higher on the NSE at ₹5,709, the stock hit an intraday high of ₹5,748.70.
Bullish brokerages have raised target prices, citing that the Q3 core earnings exceeded expectations. The strong listing activity has driven revenue growth, although this has been offset by an increase in the settlement guarantee fund (SGF) contribution.
Nuvama Institutional Equities has reiterated a buy rating on BSE with an updated target price of ₹7,250 from ₹6,730 previously. The brokerage has factored in higher volume estimates for FY25-27 and increased estimates for SGF contribution over FY26/27.
The exchange has shown strong growth despite the phased implementation of SEBI’s measures to curb excessive derivatives trading, according to Nuvama. The brokerage believes that BSE will continue to enhance its turnover numbers, especially with increased retail activity, considering its current active customer base of 1.5–2 million compared to NSE’s 4.2 million.
Motilal Oswal identified increased member participation, colocation monetization, and sustained momentum in premium turnover as key growth drivers for BSE. While the brokerage has reduced PAT estimates for FY25 by 11% due to the impact of SGF contribution, it has raised earnings estimates by 3% each for FY26/27 due to maintained momentum in premium turnover. Motilal has reiterated a buy rating with a target price of ₹6,900.
On the other hand, global brokerage Goldman Sachs has maintained a neutral stance with a target price of ₹5,650.
As of February 7, 2025, investors are closely monitoring the performance of BSE shares following the positive Q3 results and the optimistic outlook provided by various brokerages.
