Shares of India’s largest stock exchange platform rose 7.5 percent to Rs 2,330.95 apiece on Tuesday’s trading session after the brokerage gave an upside of 17 percent on the stock.
On Tuesday, BSE Ltd shares were trading at Rs 2,298 per share, up 5.86 percent from the previous close on the National Stock Exchange. The company has a market capitalization of Rs 31,141 crore.
The company’s shares have delivered multibagger returns of 320 percent in the last six months and 302 percent in a year.
The company’s revenue climbed by 55 percent year on year, rising from Rs 234 crore in Q2FY23 to Rs 362 crore in Q2FY24. During the same period, net profit increased by 600 percent from Rs 14 crore to a profit of Rs 99 crore.
According to the exchange data, Ace Investor Mukul Agrawal holds 20,00,000 equity shares in BSE Ltd that is equivalent to 1.5 percent stake as of September quarter of 2023.
On Friday, November 24,2023.The BSE Ltd shares touched all-time high price of Rs 2,475 per share,Still Brokerage Jefferies see a better potential upside on the stock,so brokerage values the stock at 35 times September 2025 price-to-earnings estimates.
Jefferies has given a ‘buy’ rating on BSE Ltd to a target of Rs 2,700 per share for an upside of 17 percent over the next 12 months based on Tuesday’s trading price per share.According to CNBC TV18 report.
The reasons behind such a upside is:
● The brokerage expects BSE to leverage macro-tailwinds along with headway in the derivatives market to deliver 150% earnings growth in the financial year 2024 and double it over a period of financial years 2024 and 2026.
● The company’s derivatives section is ramping up, which has been a significant driver for recent earnings and stock performance. Furthermore, the derivatives segment will strengthen BSE’s robust long-term growth potential. Brokerage reported.
● The brokerage also does not see a systemic risk from the higher derivatives turnover growth as it masks the lower underlying premium growth.
● According to Jefferies, BSE’s derivatives division will generate 35% of BSE’s income in fiscal year 2025. The company’s stock has risen since July of this year and after it launched newer products. Its derivatives market share has increased to over 14% from less than 1% six months ago.
According to the latest shareholding pattern, Foreign Institutional investors hold 7.9 percent of the company, Domestic Institutional Investors hold 8.09 percent stake.while retail investors hold a 58.9 percent stake in the company.
The Bombay Stock Exchange is a stock exchange company located in Mumbai, The Company provides a trading platform for stocks, currencies, debt instruments, derivatives, and mutual funds.
Written by Omkar Chitnis
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