Hold BSE: target of Rs 2450: ICICI Securities

ICICI Securities's research report on BSE

BSE enjoys strong prospects of volume growth across segments (options, cash as well as MF platform) led by derivatives, which has been our investment thesis for the stock. This, along with prospects of improvement in costs, has led to quarterly EBITDA (ex-SGF) improve from INR 1.16bn in Q1FY24 to INR 7.1bn in Q1FY26. Our revised estimates factor in a moderation in volume growth on a higher base, leading to FY26E/FY27E PAT of INR 20.4bn/23.9bn.

Outlook

We believe, possible regulatory changes remain a key risk to earnings. Maintain HOLD with a revised target price of INR 2,450 (earlier INR 2,333).