BSE share price surges 9% this week. Can it bring in more returns for its shareholders?

BSE share price: Shares of stock exchange platform BSE Limited have risen in three of the four trading sessions this week so far, with the stock rallying nearly 7% alone on Wednesday in response to the strong Q4 results and dividend announcement.

On Thursday, May 8, BSE share price extended the previous session's gains, rising another 3.5% to ₹6,891.50, bringing its gains to 9% in the four trading sessions of this week.

Following the company's Q4 earnings announcement, several brokerages have raised their target prices on the stock, projecting another 14% upside over its previous closing price.

BSE share price target hike holds significance against the backdrop of already solid gains seen in the company's stock over a few months. From August 2024 to May 2025, barring February and January, BSE shares have jumped in eight of the last 10 months. In March 2025, it gained 18% and rallied another 16% in April this year. In May so far, the scrip is up 8%.

BSE posts robust Q4 results

BSE reported a 364% jump in its March 2025 quarter profit to ₹493 crore as against ₹106 crore in the corresponding quarter last year. Its revenue also jumped 75% year-on-year in the fourth quarter of the financial year ended 2024-25 (FY25) to ₹847 crore, compared with ₹484 crore in the same period last fiscal, driven by a growth in transaction charges, service to corporate, and other operating income.

EBITDA margin expanded to 57.2% as against Motilal Oswal Financial Services' expectation of 52.6%. “Along with revenue beat, SGF reversal of ₹1.1 billion resulted in a 40% beat in PAT,” said the brokerage.

Brokerages raise BSE share price target

Against this backdrop, MOSL revised its premium average daily turnover (ADTO) estimates to ₹157 billion/ ₹190 billion for FY26/27, with further headroom for an increase as premium ADTO for Apr’25 was at ₹155b.

It also raised its earnings estimates by 9%/13% for FY26/FY27. The brokerage reiterated a 'BUY' rating on the stock with an upward revision in target price to ₹7,600.

Similarly, Nuvama Research said it builds in stronger volumes over FY26–27E, which increases FY26E/27E APAT by 7.1%/6.7%. “We are increasing the TP to ₹7,200 (from ₹6,730) i.e. FY27E P/E of 45x plus 15% stake in CDSL; maintain ‘BUY’,” it added.

BSE shares: Technical outlook

According to Kunal Kamble, Senior Technical Analyst, Bonanza Group, it is advisable to book profits in BSE share price after a strong rally.

“Since March 2024, BSE has surged by 225%, driven by an extraordinary rally in the financial services sector. The stock is forming a Higher High, Higher Low structure, however, the RSI is showing a Lower Low, Lower High pattern, indicating a divergence between price and momentum. On the monthly timeframe, the stock is also in the overbought zone,” Kamble said.

This divergence, along with the narrowing of DI+ and DI-, signals weakening strength and a potential pause in the uptrend, he said. Given the current setup, Kamble advised investors to book profits.

Rajesh Bhosale, Technical Analyst, Angel One, said BSE stock is showing strong buying interest and sees an immediate resistance at ₹7,400. "BSE is in a strong uptrend, consistently forming higher highs and higher lows. The daily chart shows that every minor dip is being bought into, indicating strong buying interest," Bhosale said.

Recently, the stock broke above its January high and has continued its upward momentum, he said, adding that key support is now placed near 6200, while immediate resistance is seen around 7400.

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.