- Jefferies raised BSE's target price to Rs 3,050 with a Hold rating after strong Q3 results
- BSE's Q3 revenue rose 17% to Rs 1,328 crore and net profit increased 8% to Rs 601.8 crore
- BSE's market share gains in SENSEX and index options supported higher earnings estimates
BSE Ltd. share price received a target upgrade from multinational investment firm Jefferies after strong revenue growth delivered the highest quarterly revenue in the October-December period. The rating was maintained at 'Hold' and the target price raised to Rs 3,050 from Rs 2,850 earlier. The new target indicates an upside potential of just 2% over the previous close.
Jefferies noted that BSE's Q3 results were ahead of expectations, primarily driven by higher transaction revenue. Operating expenses were also slightly better, excluding core SGF costs and after adjusting for the one‑off impact of the labour code change.
The brokerage has revised its FY26-28 earnings estimates higher by 4-7%, citing accelerated gains in SENSEX market share. It added that continued market share gains will remain an important driver of near‑term growth. However, the brokerage flagged that limited visibility on new product launches could pose a challenge to BSE's growth trajectory beyond FY29.
BSE Q3 Results (Consolidated, QoQ)
- Revenue up 17% at Rs 1,328 crore versus Rs 1,134 crore.
- Ebitda up 14% at Rs 861.6 crore versus Rs 756.6 crore.
- Margin at 64.88% versus 66.71%.
- Net profit up 8% at Rs 601.8 crore versus Rs 557 crore.
Despite the expiry swap in September 2025, BSE posted a strong performance in Q3, with index options ADPTV market share rising to 29%, an improvement of 227 basis points quarter‑on‑quarter. This helped drive revenue growth of 61% year‑on‑year and 16% sequentially, analysts at Nuvama said in a note. The brokerage has the highest target price on the stock at Rs 3,760.
BSE share price has risen 59% in the last 12 months. Twelve out of the 16 analysts tracking BSE have a 'buy' rating on the stock and four recommend a 'hold', according to Bloomberg data. The average of 12-month analyst price targets is Rs 3,227, which implies a potential upside of 8%.
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