Shares of BSE gained over a percent on November 13 after the company reported robust earnings for the quarter ended September 30, 2024. The exchange's net profit zoomed 187% on-year to Rs 347 and consolidated revenue from operations jumped 137% YoY to Rs 746 crore in Q2FY25.
Despite the stellar earnings report, Jefferies has issued an 'Underperform' call on BSE, setting a target price of Rs 3,500 per share.
The company’s Q2 earnings have shown significant growth, expanding threefold year-over-year, primarily due to effective cost control, which has improved margins, the international brokerage said.
However, Jefferies maintains a cautious outlook, emphasizing concerns over the potential impact of SEBI's new F&O measures on trading volumes. They view the near-term risk-reward as unfavourable, underscoring the need for cautious positioning on the stock.
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The market is expanding rapidly, both in the number of registered investors and trading turnover.
BSE highlighted key growth drivers for the trading segment, citing "rising disposable household incomes and a growing preference for financial savings" as major advantages, along with a focus on innovation and launching unique products across various segments.
For platform services, BSE pointed to the "expansion of current e-platform offerings," which include IPO book-building, Offer to Buy, Offer for Sale, and the New Bond platform. Additionally, BSE underscored its leadership in fundraising for India Inc. across segments such as Equity, Bonds, and Commercial Papers.
BSE also announced divestment in BSE Institute by sale of a 100% stake, subject to terms & conditions. According to the latest shareholder data, Zerodha, Mukul Agrawal are among its top 10 shareholders as of September 30.
As of 9:18 am, BSE shares were trading around a percent higher at Rs 4,725.15 on the National Stock Exchange (NSE). The stock rallied 113% this year, massively outperfoming Nifty's 10% gain.
Over the past 12 months, the stock has zoomed 102%, more than doubling investors' capital, while Nifty rose 23% during the same period.
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