Shares of BSE Ltd climbed 3.7% to Rs 3,735 in early trading on Thursday after the exchange operator reported strong second-quarter earnings and a recovery in derivatives trading activity.
The stock emerged among the leading market gainers following a 45% year-on-year increase in consolidated net profit for the July-September quarter of 2026-27.
However, leading brokerages offered differing assessments of the company's growth prospects and valuation.
JPMorgan maintained its Overweight rating on BSE, setting a target price of Rs3,960, indicating approximately 10% upside from Wednesday's closing price.
The brokerage highlighted improving profitability and strong earnings growth.
Bernstein, however, retained its Underperform rating while raising its price target to Rs3,180.
Its revised target suggested a potential downside of around 12%, reflecting concerns about elevated valuations and the sustainability of rapid business expansion.
BSE shares have gained 41.6% so far in 2026, outperforming the Nifty 50, which has declined 6.9% during the corresponding period.
The exchange operator's market capitalisation stood at approximately Rs1.52 lakh crore.
BSE reported consolidated net profit of Rs809 crore for the quarter ended Sept 30, 2026, compared with Rs558 crore in the year-earlier period.
Despite the annual improvement, profit declined approximately 7% from the preceding quarter.
BSE Managing Director and Chief Executive Officer Sundararaman Ramamurthy attributed the earlier slowdown in trading activity to uncertainty surrounding structural changes in the market.
He indicated that the temporary disruption had subsided, with derivatives trading subsequently recovering.
According to Ramamurthy, trading activity improved significantly in September before reaching record levels in October 2026.
The exchange recorded its highest monthly average daily turnover in index options premiums during October.
The recovery followed a partial reversal of the closing auction mechanism that month.
While stronger derivatives activity has supported the exchange's earnings outlook, brokerage assessments remain divided over whether current valuations adequately reflect its future growth potential.
