BSE jumps 6% on stellar Q2 numbers, analysts upbeat

According to Motilal Oswal, the relaunch of BSE derivatives products proved to be a trend-changing measure for BSE. "Increased member participation, increasing awareness about products and a shift in Bankex expiry would continue to drive market share gains for BSE," it said.

The BSE has a 10 percent market share in notional turnover and 3 percent premium turnover share in equity derivatives segment. "We expect this to scale up going ahead," the brokerage said.

Other levers that will support growth over the medium term include continued momentum in the Star MF business, growth in cash segment, levy of charges on the INX platform, possibility of levying a fee for listing of debt securities, start of operations at its Power Exchange and commencement of revenue from its Gold Spot exchange, Motilal Oswal analysts said.

The brokerage upgraded its earnings per share (EPS) estimates by 16 percent/23 percent for FY24/FY25 to factor in better-than-expected equity cash volumes and increasing treasury income from clearing and settlement funds. It reiterated a “neutral” rating on the stock with a one-year target price of Rs 2,250.

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Recently, the exchange revised its transaction charges for Sensex Options. "Assuming a premium market share of about 9 percent in FY26 (estimated) and a pricing increase, derivatives will account for about 25 percent of the BSE's total revenue, 35 percent of earnings before interest, tax, depreciation, and amortisation (EBITDA) and 75 percent of incremental growth," said HDFC Securities in a note earlier

Analysts also expect revenue growth at a compound annual rate of about 26 percent and EPS growth at 31 percent over FY23-26 (estimated), led by a revival in transaction revenue.

At 11.02 am, BSE was trading 5 percent higher from the previous day at Rs 2,238 on the National Stock Exchange. The scrip jumped up to 8 percent in the special Muhurat trading the previous day. The share has rallied more than 300 percent this year, delivering multibagger returns to long-term investors.

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