BSE share price jumps over 5%, extends rally to third day as analysts remain bullish; should you buy?

BSE share price is up 20 percent in 3 months and multi-bagger returns have been over 150 percent in one year. The shares are up 720% over three years.

Its oldest stock exchange, BSE, in Asia is exceptionally resilient and will be successful even with stricter index derivative regulation, according to market watchers. Although its cancelled weekly contracts represent 21.3% of its index option premiums (ADPTV), there is plenty of room to expand the customer base, they think.

More than 29% of the notional options turnover has been captured by the Bombay Stock Exchange or BSE due to product innovation, growth in member participation and lower regulation effect than its competitor NSE.

BSE stock price were raised to ‘Hold’ by the international brokerage Jefferies with target price risen to 5,250 per share from 3,500 before.

Based on the base case, Jefferies forecasts a 19% revenue CAGR over FY25-27E and a 25% operating EBITDA CAGR and 6 pp margin improvement to 58%. It expects 23% PAT CAGR on BSE and 5,250 target price on 35x FY27E P/E.

Nuvama on BSE with a "Buy" rating and a target price of 6,730 share @ a target PE of 50x FY27E EPS+ its CDSL stake, which implies a 23.5% upside from the last closing price on Tuesday.

BSE shares are also among Motilal Oswal’s 2025 Top Stocks. BSE share price target: 6,500 each with ‘Buy’ call recommended by the brokerage.

"We believe premium-to-notional turnover ratio will rise to 12bps/13bps in FY26 / FY27 and will increase revenue of BSE. Lower regulatory and clearing fees will be revenue producers.

Also steady growth in Star MF platform and scale-up of co-location service will further drive BSE growth," MOFSL added.