Ambit has initiated a buy rating on BSE Limited, setting a target price of ₹7,000 per share, implying a 28.49% upside from its current market price of ₹5,448.85. The brokerage highlights multiple growth drivers and a strong turnaround opportunity for the stock, despite regulatory challenges.
Key takeaways from Ambit’s report:
- Growth beyond penetration:
- Premium growth for BSE is expected to be driven by factors beyond market penetration, including a shift towards a more fragmented market.
- Regulatory challenges:
- Regulatory headwinds have impacted the penetration story, but BSE’s turnaround potential could offset these near-term challenges.
- Margin expansion potential:
- Despite increased spending on technology, BSE has significant room to expand margins, which could further improve profitability.
- BSE StAR platform:
- The StAR platform is viewed as a “cash cow in the making,” expected to contribute consistently to revenue growth.
Ambit remains optimistic about BSE’s ability to leverage its strengths and deliver long-term growth, making it a strong investment opportunity.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
