Buy BSE; target of Rs 7600: Motilal Oswal

Motilal Oswal's research report on BSE

BSE reported 4QFY25 operating revenue of ~INR8.5b (12% beat), up 75% YoY, driven by 113%/22%/81% YoY growth in transaction charges/ service to corporate/other operating income. FY25 revenue jumped 115% YoY. Operating expenses came in line with our estimate at INR3.6b, down 7% YoY, affected by 47%/24%/32% YoY growth in employee expenses/ technology expenses/clearing house expenses and offset by 45% YoY decline in regulatory costs. EBITDA margin expanded to 57.2% vs. our expectation of 52.6% and 19.8% in 4QFY24. Along with revenue beat, SGF reversal of INR1.1b resulted in a 40% beat in PAT at INR4.9b (+366% YoY). For FY25, reported PAT grew 73% YoY.

Outlook

We have revised our premium ADTO estimates to INR157b/INR190b for FY26/27, with further headroom for increase as premium ADTO for Apr’25 was at INR155b. We raise our earnings estimates by 9%/13% for FY26/FY27. We reiterate our BUY rating on the stock with a TP of INR7,600 (premised on 45x FY27E EPS).

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BSE - 07052025 - moti