Avendus has revised its stance on BSE Limited, raising the target price to ₹2,590 from ₹2,366 while downgrading the rating to ‘Add’ from ‘Buy’, citing limited near-term upside from current levels. The revised target implies a potential upside of approximately 6% from the current market price of ₹2,452.00.
The brokerage said its FY26/FY27 estimates remain broadly unchanged. BSE is projected to increase its index options ADTO share to 38.5% in FY26E and 39.5% in FY27E, even though premium realization may dip post the options expiry change. However, realization levels are expected to remain better than FY25.
Realization is forecasted at 10.5 bps in FY26E and 11.25 bps in FY27E, while premium CAGR is expected at 45% over FY25–27E. Despite SGF (Settlement Guarantee Fund) costs, Avendus believes strong operating leverage will help BSE maintain an average EBITDA margin of ~62% in the same period.
BSE’s revenue, EBITDA, and PAT CAGR are projected at 29%, 43%, and 41% respectively over FY25–27E, reflecting robust earnings momentum over the medium term.
Disclaimer: The views and recommendations expressed by Avendus are their own and do not represent the opinion of this publication. Investors are advised to consult a certified financial advisor before making any investment decisions.