Shares of India’s largest stock exchange platform gained traction this week after Jefferies gave an upside of 46 percent.
BSE Ltd. shares have gained a multibagger return of 368% in the last 12 months and 60% in the last six months. The company has a market capitalization of ₹27,818 crores.
The company’s operational revenue has increased by 78 percent year on year from ₹239 crore in Q3FY23 to ₹426 crore in Q3FY24, while net profit has increased by 121 percent from ₹ 48 crore to ₹106 crore.
Jefferies gave a buy call on BSE Ltd. with a target price of ₹3,000 per share, representing an upside of 48 percent from Friday’s trading price of ₹2,055 per share.
The brokerage stated that the transaction fee reduction by NSE would result in a 1.3 percent earnings impact for the first nine months of the fiscal year 2024 on an annualized basis.
The brokerage considers this transaction charge a routine occurrence, noting its smaller scale compared to FY17 and FY23, indicating a restrained inclination towards participating in price wars.
Furthermore, the brokerage anticipates that the pricing of products and the monetization plans for new products by the country’s oldest exchange will remain unaffected by the rival’s measure. In essence, the global brokerage holds a positive outlook on the company’s future, projecting a more than 2.5 percent increase in earnings from FY24 to FY26.
According to the latest shareholding pattern, foreign institutional investors hold 12.03 percent of the company, while domestic institutional investors hold an 11.27 percent stake. while retail investors hold a 53.56 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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