Motilal Oswal's research report on BSE
We had upgraded BSE to BUY from Neutral in our thematic report titled “Indian Capital Market: A golden era!” published in Dec’24. We followed up in Jan’25 with BSE as one of our top ideas for 2025. Since our upgrade in Dec’24, the stock has delivered a stellar return of 48%. BSE has announced the shift in the expiry of weekly contracts of Sensex from Tuesday to Thursday starting 01 Sep’25. We note that this shift will lead to a loss in market share for BSE in terms of premium turnover, which stood at 22.6% in May’25. Currently, each of the days accounts for 18-22% share in the week’s total premium volume. BSE has a market share of 8% on Wed/Thu and 21%/24%/38% on Fri/Mon/Tue. Overlaying the current trends on the day-wise share in volumes for the week, we expect a market share loss of 350-400bp for BSE. We reduce our premium average daily turnover (ADTO) estimates for FY26/FY27 to INR137b/INR157b from INR155b/INR190b earlier. This is translating into a reduction of 9%/12% in our FY26/27 earnings estimates.
Outlook
With the recent rally, the stock trades at FY27E P/E of 53x, significantly higher than its historic average as well as that of its global peers. We downgrade our rating on BSE to Neutral with a revised TP of INR2,300 (45x FY27E P/E).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
