Multibagger Stock: BSE share price volatile after Q4 Results. Here’s what analysts say

BSE share price trades volatile on Thursday's session following its Q4 Results. The stock exchange's revenue jumped by 70% in FY24 to ₹1,618 crore from ₹954 crore in FY23. In addition to announcing its best-ever financial performance, the BSE declared a final dividend of Rs 15 per equity share for FY 2023–2024, as per the filing.

In FY24, the exchange's net profit climbed to ₹404 crore, a 97% rise over the previous fiscal year. Since relaunching on May 15, 2023, BSE has completed transactions for 11.3 billion contracts in the equity derivatives category during FY24, generating a total income of ₹176 crores.

Also Read: Hero MotoCorp share price jumps over 6% boosted by Q4 result; should you buy, sell, or hold? Here's what experts say

The BSE's MD and CEO, Sundararaman Ramamurthy, expressed satisfaction in achieving their goal of creating a vibrant trading platform. They have established a robust range of enterprises, swift innovation, and a well-defined approach. It is now appropriate for them to expand and enhance their current product offerings, and they believe they are headed in the correct direction.

The BSE share price today opened at ₹2,791.00 apiece on NSE. The stock touched an intraday high of ₹2,885 and an intraday low of ₹2,775. BSE share price, valued at ₹535 apiece a year ago, have jumped by an stellar 420%, reaching the current market price of ₹2,784.05.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, BSE shares had a positive start but have now given up morning gains. Over all, the stock is in the range of ₹2,720–2,800, only beyond which the momentum would trigger, and the primary trend remains positive.

Also Read: Piramal Enterprises stock slips over 6% post Q4 numbers, Motilal Oswal cuts rating to 'Neutral'

Derivative contracts (Sensex and Bankex) are seeing a lot of traction from market players following the relaunch, according to domestic brokerage Motilal Oswal Financial Services. With effect from May 13, 24, the BSE has raised the transaction fees for derivatives. The derivatives segment would thus experience significant revenue growth.

“We raise our EPS estimates by 6%/10% for FY25/FY26 to factor in: 1) a higher than-expected growth in volumes; 2) a higher profitability in CDSL; and 3) a lower-than-expected clearing & settlement cost. Reiterate Neutral with a one-year target price of ₹3,000,” the brokerage said. 

The brokerage states that the following additional levers will help sustain growth in the medium term: 1) repricing of derivatives contracts; 2) co-location revenues; 3) sustained growth in the Star MF business; 4) expansion in the cash segment; 5) potential fee-for-listing debt securities; 6) opening for business at its Power Exchange; and 7) beginning to generate revenue from its Gold Spot exchange.

Also Read: Defence stocks to buy: HAL, BEL shares gain over 2% as Nomura initiates coverage, sees up to 30% upside

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.