BSE shares drop 2% despite 103% YoY surge in Q1 net profit; should you buy, sell or hold?

Motilal Oswal Financial Services kept a 'neutral' rating on the stock, but increased its target price to Rs 2,600 apiece. This implies an upside potential of nearly 6.5 percent from the stock’s previous closing price of Rs 2,442 apiece. The domestic brokerage said that the firm’s Q1 net profit beat its estimates by 13 percent, driven by lower-than-expected clearing house expenses.

Motilal Oswal increased its earnings estimates for BSE by 7 percent each for FY26 and FY27, in order to adjust for lower clearing house costs and income from colocation. It however kept the ‘neutral’ rating, anticipating a market share loss from the shift in expiry from September 2025 and uncertainty over future regulatory actions.

"We expect BSE to lose 300-400bp of premium turnover market share once the weekly expiry shifts to Thursday from Tuesday currently. Any further regulatory moves to curb retail activity in F&O can impact volumes for the exchange," it said.

Jefferies kept a 'Hold' rating for BSE shares, but reduced its target price to Rs 2,790 apiece. The international brokerage said that the firm’s Q1 profit was in line with estimate, buy revenue growth missed expectations slightly, according to CNBC-TV18. Jefferies trimmed its EPS estimates by 5-6 percent, to account for lower options activity.

Goldman Sachs maintained a 'Neutral' rating on the stock, with a price target of Rs 2,550 per share. This implies an upside potential of more than 4 percent from the stock’s previous closing price of Rs 2,442 apiece. EPS and operating revenue were above estimates, the international brokerage was cited by CNBC-TV18 as saying.

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