Financial Services · BSE
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from 3,241 today
Hollow marker shows the firm’s previous target.
Regulatory pressures such as the implementation of CAS, stricter bank guarantee norms, and the hike on STT in the F&O segment are expected to weigh on overall growth, leading us to cut our FY27/FY28E PAT estimates by 2%-6% and reduce our multiple to 43x on FY28E PAT. We maintain our BUY rating with a revised target price of INR 4,025.
Industry volumes declined due to recent regulation and hence we reduce our FY27E/28E APAT by 16.6%/14.4%, yielding a TP of INR4,090, i.e. Jun-28 PE of 45x plus 15% stake in CDSL. At CMP, the stock trades at FY27E/28E PE of 49.7x/41.4x; maintain 'BUY'.
Q1FY27 performance was broadly in line with expectations, driven by a surge in the equity derivatives segment, though recent regulatory changes are expected to temper the earnings outlook. We maintain our Neutral rating with a revised target price of Rs3,940.
BSE reported a steady quarter with operating revenue growing 63% YoY, driven by strong transaction charges, though near-term outlook remains muted with a cut in earnings estimates due to higher opex and a weak volume trajectory.
Operating revenue grew 63% YoY to INR15.7bn, supported by higher trading activity across cash, derivatives and Star MF. Reiterate 'Buy' with a multiple of 49x FY28E EPS and a TP of INR4,850.
Ratings and target prices as published by each firm. Each summary condenses that firm's stated view in its own note and is attributed to it; no report text is reproduced.
