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BSE Stock Plummets After Downgrade
18 Aug
Summary
- Jefferies downgraded BSE, citing revenue risks from traders.
- BSE shares fell over 4.5% following the downgrade.
- Q1FY27 results showed a 62% jump in net profit for BSE.
BSE shares experienced a sharp decline of over 4.5% this morning. This downturn followed a downgrade by brokerage firm Jefferies, which cited potential risks to revenue stemming from domestic proprietary traders. The stock opened lower and fell to an intraday low before showing a slight recovery.
Jefferies has assigned an "Underperform" rating and significantly reduced its target price for BSE shares from Rs. 3520 to Rs. 2940. The firm also cut its estimated earnings per share for FY27-29, noting a slowdown in BSE's market share gains outside of key trading days.
Conversely, other financial services firms like MOFSL and PL Capital have reiterated "Buy" ratings following BSE's positive Q1FY27 results. The exchange reported a consolidated net profit of Rs 874 crore, a 62% increase year-over-year, with revenue from operations rising 63% to Rs 1,566 crore. This strong performance was primarily attributed to a surge in derivatives trading volumes and increased transaction charges.
