BSE shares drop over 2% after brokerage firm Nuvama slashed its target price to ₹5,160 from ₹7,250. Despite the cut, Nuvama maintains a ‘buy’ rating. As of 10:42 AM, the shares were trading 1.54% lower at Rs 4,113.90.
The downward revision follows NSE’s move to shift derivative contract expiries to Mondays, a day before BSE’s expiry. This shift could impact retail trading volumes, leading to a drop in BSE’s market share from 22% (Feb 2025) to 18%.
Adding to the concerns, SEBI’s consultation paper on derivative exposure limits could further restrict growth, prompting Nuvama to lower BSE’s earnings estimates for FY25-27. The brokerage has also reduced BSE’s target P/E multiple from 50x to 40x, citing increased competition, regulatory uncertainty, and weaker earnings visibility.
Despite near-term challenges, Nuvama remains bullish on BSE, forecasting a 17.1% EPS CAGR over FY25-27. However, investors should watch for competitive pressures and regulatory developments, which could impact short-term stock performance.
BSE Ltd.’s share opened at ₹4,170, reaching a high of ₹4,233.80 and a low of ₹4,052.25. The stock has seen significant movement, with a 52-week high of ₹6,133.40 and a low of ₹1,941.05.
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