Shares of BSE Limited have been on an impressive upward trajectory this week, with the stock experiencing gains in three out of four trading sessions. On May 8, the BSE stock soared nearly 7% following a robust announcement of its Q4 financial results and a favorable dividend announcement. The upward trend continued the next day, with shares climbing an additional 3.5% to reach ₹6,891.50. Overall, this marks a notable 9% increase in just four trading days.
Strong Financial Performance Drives Stock Rally
The surge in BSE’s share price is largely attributed to the company’s remarkable Q4 earnings, which revealed a staggering 364% increase in profit, reaching ₹493 crore compared to ₹106 crore in the same quarter last year. Revenue also saw a significant boost, rising 75% year-on-year to ₹847 crore, driven by increased transaction charges and service revenues. The EBITDA margin impressively expanded to 57.2%, surpassing expectations.
- Key financial highlights:
- Profit: ₹493 crore (up 364%)
- Revenue: ₹847 crore (up 75%)
- EBITDA Margin: 57.2%
Analyst Upgrades and Revised Targets
In response to these impressive results, multiple brokerages have adjusted their target prices for BSE shares. For instance, Motilal Oswal Financial Services (MOSL) has revised its average daily turnover estimates, projecting significant growth in the coming years. They have increased their target price to ₹7,600, maintaining a strong ‘BUY’ recommendation.
Additionally, Nuvama Research has also raised its price target to ₹7,200 from ₹6,730, reflecting an optimistic outlook for the stock’s performance in FY26 and FY27.
Technical Analysis Insights
According to Kunal Kamble, a Senior Technical Analyst at Bonanza Group, investors may want to consider booking profits after the recent rally. Since March 2024, BSE shares have surged by 225%, and while the stock is in an upward trend, indicators suggest a potential pause. Kamble noted a divergence between price movements and momentum indicators, advising caution.
- Technical indicators to watch:
- Resistance Level: ₹7,400
- Support Level: ₹6,200
In contrast, Rajesh Bhosale, a Technical Analyst at Angel One, highlighted strong buying interest in BSE shares, indicating that any minor dips are quickly being purchased. He emphasized that the stock’s upward momentum remains robust, supported by consistent higher highs and lows.
Conclusion
BSE Limited’s stock is currently experiencing significant market enthusiasm, fueled by impressive earnings and optimistic analyst forecasts. As investors navigate this volatile environment, it’s essential to monitor both technical indicators and market sentiment to make informed trading decisions. With the stock poised for further growth, the upcoming weeks will be crucial in determining its future trajectory.
