BSE shares up 10% post Q4 results; here are target prices

Shares of stock exchange BSE climbed 10 per cent in Wednesday's trade following a strong set of quarter results, even as there remained broader concerns over the flaring up of India-Pakistan tensions. The stock surged 9.64 per cent to hit a high of Rs 6,847.50 on NSE, taking its year-to-date gain to 21 per cent .

Stock analysts noted BSE’s index option premium market share rose to 23.6 per cent in April 2025 from 16.4 per cent in December 2024, mainly due to BSE revising expiry day to Tuesday (from Friday). 

"With NSE retaining its expiry day as Thursday, we expect index option volumes for BSE to sustain given a 3-day gap for BSE’s expiry. BSE continued to deliver robust revenue growth of 73.4 per cent YoY," Nuvama said.

For Q4FY25, BSE's cash ADTV slid 44.6 per cent YoY amid weak equity markets. The cash market share fell 282 bps YoY to 5.4 per cent. The management expects rollout of single contract note structure to aid cash market share. 

"We build in stronger volumes over FY26–27E, which increases FY26/27 APAT by 7.1 per cent/6.7 per cent. We are increasing the target to Rs 7,200 (from Rs 6,730) i.e. FY27E P/E of 45 times plus 15 per cent stake in CDSL; maintain ‘BUY’," Nuvama said. 

BSE is looking to add 200 colocation racks before the end of FY26, taking the total count to 500 racks. While the company has introduced a per-order rate on a pilot basis, the aim is to develop a flexible revenue model for different customer cohorts, MOFSL noted.

"We have revised our premium ADTO estimates to Rs 15,700 crore/Rs 19,000 crore for FY26/27, with further headroom for increase as premium ADTO for April 2025 was at Rs 15,500 crore. We raise our earnings estimates by 9 per cent/13 per cent for FY26/FY27. We reiterate our BUY rating on the stock with a target of Rs 7,600," MOFSL said.
On Tuesday, the stock exchange had a 362 per cent year-on-year (YoY) jump in its net profit at Rs 494 crore for the March quarter on 75 per cent surge in revenue from operations at Rs 847 crore.