Shares of the BSE (Bombay Stock Exchange) Limited hit a record high of Rs 6,030.90, gaining 4 per cent on the National Stock Exchange (NSE) in Thursday’s intra-day trade. In three days, the stock price of the exchange and data platform company has rallied 17 per cent. It surpassed its previous high of Rs 5,837.95, touched on December 20, 2024.
In the past six months, the market price of the BSE has more than doubled, or zoomed 154 per cent, from the level of Rs 2,371.40. In comparison, the Nifty 50 was down 5.2 per cent during the same period.
A sharp rally in the stock price of the company has seen the company's market capitalisation cross the Rs 80,000-crore mark for the first time. Currently, at 01:47 PM, the BSE’s market capitalisation stood at Rs 80,902 crore, data from the NSE showed.
In terms of financials, in the July to September quarter (Q2FY25), the BSE recorded its highest ever quarterly revenues of Rs 819 crore on a consolidated basis, up 123 per cent, compared to the corresponding quarter in the previous year. The growth in revenues was led by a strong performance in transaction-related income, treasury income from clearing and settlement services and investment-related income. The BSE's operational revenues had grown by 137 per cent year-on-year (YoY) to Rs 746.3 crore from Rs 314.5 crore.
The net profit attributable to shareholders of the company grew 188 per cent YoY to Rs 346.8 crore. The BSE has achieved a significant milestone by surpassing the 50 per cent operating earnings before interest, tax, depreciation and amortisation (Ebitda) margin threshold for the first time, reaching 52 per cent in Q2FY25.
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Moreover, the BSE's average daily turnover in the cash segment for Q2FY25 increased 64.9 per cent YoY to Rs 9,768 crore on account of a buoyant market.
Motilal Oswal Financial Services (MOFSL) reiterates its 'Buy' rating on the BSE with a target price of Rs 6,500, based on 45x Sep’26E EPS. The brokerage firm expects BSE to register a compound annual growth rate (CAGR) of 44 per cent/74 per cent/74 per cent in revenue/Ebitda/PAT during FY24-27E, as it believes the improvement in the premium-to-notional turnover ratio will offset the decline in volumes.
The BSE has successfully captured over (approximately) 29 per cent of the notional options turnover (December 2024), achieving a significant milestone in its competitive positioning against NSE, aided by product innovation, an increase in member participation, and lesser impact of regulatory changes compared to NSE.
While the restriction on weekly expiry contracts per exchange, effective from November 2024, has impacted industry volumes, the BSE has witnessed an improvement in premium ADTO (average daily turnover) (9 per cent absolute growth in December 2024), premium turnover market share (at 15 per cent in December 2024), and the premium-to-notional turnover ratio (at 10bps in December 2024, compared to an average of 7.3bps in the previous three months), the brokerage firm said.
Additionally, the decline in notional turnover will lower the regulatory charges and clearing & settlement costs, boosting the company’s profitability. The change in Sensex expiry day from Friday to Tuesday will also boost the BSE’s market share, according to the brokerage firm. Star MF has delivered a stellar performance and the BSE continues to invest in growing this business, as it sees humongous opportunities to increase the revenue contribution from Star MF, MOFSL added.