Leading exchange BSE shares fell 3.5% in early trade to a day's low of Rs 4,516 on the NSE, despite the firm reporting a 193% year-on-year (YoY) increase in its consolidated net profit of Rs 346 crore for the second quarter. 

Revenue from operations surges by 138% YoY to Rs 746.3 crore up from Rs 314.5 crore previous year. Operating expenses rose to Rs 386 crore between July and September 2024, up from Rs 204 crore previous year.

Investment revenue increased to Rs 67 crore in the quarter, up from Rs 47.5 crore last year. Meanwhile, other income incleased marginally to Rs 5.68 crore from Rs 4.99 crore from last year.

According to Trendlyne statistics, the company's average target price is Rs 3,817, reflecting an 18% decrease from current market levels. The consensus rating for the stock among seven analysts is Hold.

Motilal Oswal: Neutral | Target price of Rs 4,500

The reintroduction of BSE derivatives products has proven to be a game-changing measure for BSE income and profitability. Increased member involvement, new product launches (stock derivatives), rising product awareness, and the recent debut of stock derivatives should all contribute to BSE's market share growth. Motilal Oswal has upgraded its earnings expectations for FY25/FY26/FY27 by 6%/9%10%, citing strong transaction growth and better-than-expected operational efficiency.

HDFC Securities: Reduced | Target price: Rs 3,715

BSE had a successful quarter, with 23% QoQ revenue growth driven by increased options volume and pricing revisions (full quarter impact). The local brokerage business forecasts a 20% volume impact on notional volume, but a lesser impact on premium, as options volume shifts to non-expiry days and monthly contracts, resulting in greater premium realization. The revenue/EPS CAGR of 37/42% for FY24-27E is strong, although it is primarily front-loaded.