BSE generating robust profits: Check target price set by Nuvama

Kolkata: BSE is not only the oldest stock exchange of Asia and one of the largest according to market cap in the world, it is also the only listed exchange and will remain so till NSE is in a position to float its IPO. Data show that the BSE stock has appreciated by about 55%. The rise is stupendous, especially when judged against Nifty 50 that appreciated 9%. No wonder brokerages are bullish on BSE.

BSE has reported robust Q2FY26 results on Nov 11, following which the stock was trading at Rs 2,790.40 up 5.55% a little after midday on Nov 12. On Nov 11, it jumped 7% high and went up to Rs 2,818. Prominent brokerage Nuwama has assigned an aggressive target price on BSE shares. In the past one year, the BSE stock jumped about 80%. The 52-week high of Rs 3,030 was recorded on June 10. The 52-week low of Rs 1,227.33 was recorded on March 11 this year.

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Nuvama has upped the earnings estimates between FY26 and FY28 by 10% to 14%. It also revised its earlier target price of Rs 2,820 to Rs 3,130. It has valued the stock at 45x P/E along with a 15% stake in CDSL. Nuvama also mentioned that weak other income kept APAT (adjusted profit after tax) at Rs 5.4 billion and that despite swap expiries in September 2025, BSE lost only 221 basis points of market share on a monthly basis. The brokerage also noted that average daily premium turnover value jumped by 30.2% on a monthly basis in October this year. Nuvama thinks the average daily premium turnover value will continue to rise between FY26 and FY28.

BSE's net profit increased by 61% to Rs 558.5 crore in Q2FY26 period. It was Rs 346.8 crore in Q2 FY25. The revenue for the quarter (Q2FY26) jumped by 44.2% to touch Rs 1,068.4 crore, compared to Rs 740.7 crore in the same quarter a year ago. Transaction fees rose to Rs 794 crore in Q2FY26 from Rs 507.1 crore in the same quarter last year.

In Q2FY26, BSE had a market share of 27.1% which is a 3.34 percentage point rise compared to the earlier quarter of index options average daily premium turnover value. Operational leverage expanded EBITDA margin by a huge 11.60 percentage points year-on-year to 62.5%. EBITDA growth stood at 75.1% year-on-year and 8.7% quarter-on-quarter.