BSE’s stock price is in focus as Nuvama maintains a ‘buy’ rating but cuts its target price to ₹5,160 from ₹7,250, implying a 23.37% upside from the current market price (CMP) of ₹4,183.00.
The brokerage notes that NSE has shifted its derivative contract expiry to Monday, which is one day before BSE’s expiry, potentially impacting retail trading volumes. As a result, BSE’s market share is expected to moderate to 18% (from 22% in Feb 2025).
Additionally, SEBI’s consultation paper on derivative exposure limits could further restrict growth, prompting Nuvama to cut BSE’s FY25-27 earnings estimates. The brokerage has reduced BSE’s target P/E multiple to 40x (from 50x) due to heightened competition, regulatory uncertainty, and lower earnings visibility.
Despite the target cut, Nuvama remains positive on BSE, expecting a 17.1% EPS CAGR over FY25-27, but warns that competitive pressures could limit near-term gains.
Disclaimer: The views and investment recommendations in this article are sourced from brokerage reports. Business Upturn does not provide investment advice. Readers should consult financial experts before making any investment decisions.
