BSE share price continued its upward momentum on Wednesday, rising over 2% amid strong buying interest. The stock gained as much as 2.30% to Rs 3,904.70 apiece on the BSE. With Wednesday's gains, BSE share price has rallied more than 20% in 13 trading sessions.
The latest leg of the rally in BSE stock comes after ICICI Securities upgraded its rating on BSE shares to ‘Add' from ‘Hold' and raised its target price to Rs 4,210 from Rs 3,530 earlier. The revised target implies an upside potential of around 10% from the previous session's closing price.
The brokerage remains positive on BSE's volume growth prospects across its derivatives, cash and mutual fund distribution platforms, with derivatives continuing to be its key growth driver.
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ICICI Securities values BSE at 40 times its core FY28 estimated earnings, while adding the value of its 15% stake in Central Depository Services Ltd. (CDSL), based on a target price of Rs 1,333 after applying a 20% holding company discount. The brokerage has also factored in free cash of Rs 179 per share to arrive at its revised target.
The brokerage highlighted a sharp improvement in BSE's operating performance, with quarterly EBITDA, excluding the Settlement Guarantee Fund (SGF), rising to Rs 10.9 billion in Q2FY27 from Rs 1.9 billion in Q2FY24.
October Volumes Signal Strong Rebound
BSE witnessed a significant recovery in trading activity in October 2026. Its notional average daily turnover (ADTV) rose 34.8% to Rs 247 trillion compared with Q2FY27, while premium ADTV jumped 58.1% to Rs 353 billion.
Average daily options contracts increased 41.6% to 169 million, indicating a strong recovery in derivatives activity. However, cash segment ADTV remained relatively stable at Rs 103 billion, while Star MF orders stood at 79 million.
Factoring in the higher October volumes, ICICI Securities raised its FY27 and FY28 profit after tax (PAT) estimates by 15.5% and 17.5%, respectively, to Rs 38 billion and Rs 44.7 billion.
The brokerage sees further upside from sustained market share gains and better execution. However, regulatory changes remain a key downside risk for the stock.
At 11:40 AM, BSE share price was trading 1.99% higher at Rs 3,892.40 apiece on the NSE.
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