BSE shares: MOFSL expects a decline in option volumes in the short-term after the implementation of new regulations. The pace of recovery remains uncertain, it said. Multibagger stock BSE Ltd fell over 3 per cent in Wednesday's trade following the stock exchange's September quarter results. The stock fell even as BSE reported 192 per cent surge in profit, which beat MOFSL's estimates by 20 per cent, driven by strong revenue growth and operational efficiency. BSE crossed the 50 per cent operating margin threshold for the first time, with Q2 margin at 52 per cent.
That said, given the 106 per cent surge in 2024 so far, MOFSL sees limited upside potential for the stock going ahead.
The brokerage noted that there is uncertainty about the impact of F&O regulations on the stock exchange. "We estimate a CAGR of 36 per cent/27 per cent in revenue/PAT over FY24-27, driven by a better premium to the notional turnover and healthy operational efficiency," MOFSL said.
The stock fell 3.46 per cent to hit a low of Rs 4,516. MOFSL said BSE has set the transaction fee at a uniform rate of Rs 3,250 per crore of premium for the index derivatives options contract from October 1, 2024. It will continue with Sensex derivatives as the sole weekly expiry product w.e.f. November 18.
"While we expect a decline in option volumes in the short-term after the implementation of new regulations, the quantum of the impact and the pace of recovery remain uncertain. We maintain our Neutral rating on the stock with a target price of Rs 4,500 (premised on 40x EPS Sept’26)," it said.