During trading on Wednesday, BSE Limited shares declined by 4 percent on their first day of inclusion in the Nifty Club index. The Nifty index includes 50 of India's largest companies, selected based on average market capitalization considering free cash flow over the last six months. Trading liquidity criteria are also applied before inclusion. This company replaced Wipro in the index.
After being included in Nifty50, BSE shares fell by 3.68 percent on Wednesday, reaching a low of 3,085.20 rupees per share on the NSE. However, they had shown a growth of 3.31 percent the day before. Since the beginning of the current year, the company's shares have grown by 18.46 percent.
The current target price for this stock was 3,787.68 rupees, implying a potential further growth of 18.4 percent. When BSE entered the Nifty index, its average market capitalization considering free cash flow over six months was 140,879 crore rupees. Macquarie recently assigned BSE an 'outperform' rating and set a target of 4,000 rupees.
On September 24, Macquarie stated that its target of 4,000 rupees is based on a 40-times earnings per share multiple for the 2029 fiscal year, plus one standard deviation (average over 3 years). This is justified by the process of financial integration in India, market conditions, the growing significance of BSE, and profits from money equivalent/derivatives stocks.
Bernstein set a target price for BSE at 2,820 rupees, reflecting their view of the company as 'underperform'. Meanwhile, JP Morgan assigned an 'overweight' rating with a target of 3,950 rupees. Hangton International proposed a target of 4,060 rupees for BSE for the current month. HDFC Securities recommended 'add' with a target price of 3,850 rupees.
In its report, Macquarie noted that the expansion of the BSE platform and stock growth create opportunities for increased revenue and margins, which supports strong cash flow. Macquarie forecasts that BSE's revenue will grow by 16 percent on average from the fiscal year 2026 to 2030, supported by equity growth and corresponding profits from money equivalent and F&O stocks. Alternative opportunities exist due to the implementation of Smart Order Routing (SOR), high Price-to-Nominal ratio (P/N), and the attractiveness of monthly options.
BSE's EBITDA margin is expected to reach 65.7 percent in the fiscal year 2026, and Macquarie expects it to approach 70 percent by the fiscal year 2030 due to increased income from index options and non-trading receipts.