BSE Q1 Review: Most Analysts Still Bullish — Should You Buy? Check Target Price
Nuvama increased the target for BSE share price to Rs 2,820 from Rs 2,770 earlier and Jefferies reduced to Rs 2,790 from Rs 2,900.
BSE Ltd. still has more buy calls after robust revenue and profit growth in the first quarter of the financial year 2026.
Five out of nine analysts tracking India's oldest stock exchange have a 'buy' rating on the stock and the rest are 'hold', as per Bloomberg data.
Nuvama increased the target price to Rs 2,820 from Rs 2,770 earlier, based on a price-to-earnings of 45 times as well as the value of a 15% stake in CDSL. It placed a 'buy' call on the stock.
On the other hand, Jefferies maintained 'hold' and reduced target price to Rs 2,790 from Rs 2,900.
BSE Q1 Recap
BSE reported a strong topline growth in the first quarter, driven by transaction charges income. A decline in clearing and settlement expenses and other expenses aided margin expansion.
The company also posted its best-ever quarterly net profit.
BSE Q1 Key Highlights (Consolidated, QoQ)
Revenue up 13.1% to Rs 1,037.45 crore versus Rs 916.97 crore
EBITDA up 27% to Rs 704.99 crore versus Rs 554.54 crore
Margin at 68.0% versus 60.5%
Net Profit up 9% to Rs 539 crore versus Rs 494 crore
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Analyst Commentary
BSE’s index option ADPTV market share increased from 16.4% in December 2024 to 25% in July 25, mainly due to BSE revising the expiry day to Tuesday from Friday earlier.
Nuvama said with BSE changing its expiry day to Thursday in September, it expects index option Average Daily Premium Turnover (ADPTV) to decline by Rs 1,500 crore, given that a three-day gap for BSE’s expiry will narrow to two days. This will also result in a lower premium to notional turnover ratio and hurt margins.
Jefferies said the Q1 print has been healthy, but a slight drag may come if options volume stays soft.
Analysts noted that the company's management has clarified that there is no discussion yet on a shift from weekly to fortnightly and monthly expiry.
The brokerage cut earnings by 5-6% to factor in tad lower options trading volumes reflecting lower volatility and uncertainty arising from news flow around US tariffs and other events.
