BSE LTD is the second biggest stock exchange in India after NSE. Bombay Stock Exchange was established in 1875, much before National Stock Exchange. The company has been in a strong uptrend since the beginning of 2023. In this article, let us check BSE LTD Share price target forecast for 2023, 2024, 2025 and upto 2030. We will also check if it’s the right time to invest in shares of BSE for the future.
In order to forecast the share price target for BSE LTD for coming years, we will study its fundamentals and technicals along with the industry outlook.
As investors and traders, we all have experienced a drastic increase in the number of people in the stock market in the last 3 years. These increasing market participants bring prosperity to stock exchanges like BSE and NSE as they make money through transactional charges.
ABOUT BSE LTD
The Bombay Stock Exchange, or BSE, is the oldest stock exchange in Asia. The BSE is one of the largest stock exchanges in the world. As of June 2023, the total value of all the companies listed on the BSE was $3.8 trillion.
The BSE gives companies a place to list their shares so investors can buy them. It also lets investors trade things like stocks, bonds, mutual funds, and derivatives. The BSE operates in over 350 cities and towns across India.
Bombay stock exchange is regulated by an Indian government agency called the Securities and Exchange Board of India, or SEBI. The company has rules in place to protect investors and ensure fair trading. For example, it has an Investor Protection Fund and an Investor Education department.
What does BSE do?
- Listing of securities: The BSE gives companies a place to list their shares so that the companies can sell them to raise money from investors.
- Trading of securities: BSE LTD runs a stock market where investors can buy and sell shares and other securities. This allows for trading at competitive market prices.
- Settlement and clearing: After trades happen on the BSE, it makes sure buyers receive the shares and sellers receive the payment. This completes or “settles” the trades.
- Market surveillance: BSE keeps a close watch on all trading activity to prevent fraud or manipulation in the market.
- Investor education: The company provides programs and resources to teach investors about how the stock market works. This helps investors make informed investment decisions.
Overall, the BSE aims to maintain a fair, orderly, and efficient stock market in India and provide services that benefit both companies and investors.
BSE Share Price Target 2023
BSE’s share price target for 2023 is ₹ 1156 as our minimum target and ₹ 1360 as our maximum target, which should be reached by the 4th quarter of 2023. The projected target is because the company grew its Operating Revenue. From June 2022 to June 2023, it increased slightly from 141.68 Cr to 156.62 Cr. This means BSE made a bit more money from its regular activities in June 2023 compared to June 2022.
However, the net profit significantly increased from 21.37 Cr to 507.14 Cr over the same period, which is a highly positive sign. Yet, the total provisions skyrocketed to 504.17 Cr in June 2023, which suggests that the company is preparing for future financial instability or losses.
BSE Share Price Target 2024
The share price target of BSE for 2024 is ₹ 1681 as our first target and ₹ 1753 as our second target. If the company makes the same amount of profit as usual this year or even more, then it means they were just being extra careful when they set aside a large amount for potential losses in 2023. But if their profit goes down, that’s a red flag. We’ll also need to keep a close eye on their overall sales revenue.
The extra money they get from investments and other sources must keep making up a good portion of their total income. If their sales revenue drops, the extra income can help fill the gap. The additional income needs to go up if their regular sales revenue decreases so that their total stays steady.
BSE Share Price Target 2025
The operating expenses have been fluctuating but showed an increase from 93.31 Cr in Mar 2023 to 118.35 Cr in Jun 2023. This increase in operating expenses will need to be managed carefully to ensure it does not erode the net profit. If BSE focuses on cost optimization strategies to manage the increasing operating expenses while maintaining or growing its revenue, we will get higher share price targets even in the year 2025.
As per our analysis, BSE’s share price target for 2025 will be ₹ 1947 as minimum target and ₹ 2100 as maximum target.
BSE Share Price Target 2023 to 2030
| Year | BSE Share Price First Target | BSE Share Price Second Target |
|---|---|---|
| 2023 | ₹1156 | ₹1360 |
| 2024 | ₹1681 | ₹1753 |
| 2025 | ₹1947 | ₹2100 |
| 2026 | ₹2198 | ₹2310 |
| 2027 | ₹2400 | ₹2569 |
| 2028 | ₹2704 | ₹2800 |
| 2029 | ₹2897 | ₹3000 |
| 2030 | ₹3260 | ₹3519 |
By 2030, it would be crucial to see a well-rounded performance across all metrics: operating revenue, operating expenses, provisions, net profit, reserves, assets, and liabilities. It will be important to continually monitor all financial metrics and implement strategies that ensure financial stability and growth potential.
Things to consider after investing in BSE
- Revenue Growth: It’s important to keep an eye on whether BSE can keep making more profits.
- Operating Costs: BSE’s cost management will play important factor in maximizing their profits, keep watch on this.
- Provisions for Losses: BSE has set aside a lot of money for future losses. This could mean they are expecting some financial trouble ahead. It’s vital to understand why this is and what it means for the company’s health.
- Profit: Even though BSE set aside a lot of money, their profit increased a lot. It’s important to figure out why and if this is something that will continue.
- Taxes: BSE’s tax bill is getting bigger. It’s essential to monitor how BSE is handling this to make sure it doesn’t eat too much into their profits.
Challenges faced by BSE
Increasing expenses
From the financial data, it’s clear that BSE is facing a few challenges. Firstly, while the operating revenue is increasing, which is a positive sign, the operating expenses are also on the rise. This means that even though BSE is making more money, it’s also spending more to run its business. This is a concern because it could eat into the profits if not managed well.
Increasing Provisions
Secondly, there is a sudden and significant increase in total provisions, which is a bit worrying. This could indicate that BSE is expecting financial losses or instability in the future, which is never a good sign.
High Taxes
Lastly, the tax burden of the company is increasing, which could impact the net profit negatively. This is something that needs to be managed carefully to ensure the financial health of the company. So, while BSE is making more money and its profits have increased, there are some warning signs that need to be monitored closely.
BSE's Financials
| Particulars | JUN 2022 | SEP 2022 | DEC 2022 | MAR 2023 | JUN 2023 |
|---|---|---|---|---|---|
| Operating Revenue | 141.68 | 147.43 | 154.14 | 156.33 | 156.62 |
| Other Income | 6.27 | 67.61 | 32.56 | 36.37 | 47.54 |
| Interest Expended | 0 | 0 | 0 | 0 | 0 |
| Operating Expenses | 111.61 | 126.54 | 124.35 | 93.31 | 118.35 |
| Total Provisions | 0 | 0 | 0 | 0 | 504.17 |
| Depreciation | 8.65 | 9.83 | 14.25 | 16.25 | 16.60 |
| Profit Before Tax | 27.69 | 78.67 | 48.10 | 83.14 | -434.96 |
| Tax | 6.32 | 22.48 | 17.27 | 24.62 | 66.24 |
| Net Profit | 21.37 | 56.19 | 30.83 | 58.52 | 507.14 |
| Adjusted EPS (RS) | 1.58 | 4.15 | 2.28 | 4.32 | 37.44 |
Future of BSE
The future of BSE seems to have both opportunities and challenges. The positive is that their main business revenue keeps going up. Even with setting aside a large chunk of money just in case, their overall profit has still grown a lot. So they’re making more from their regular operations, and being careful with preparations for any money troubles down the road.
But it’s not all that easy – they’ll likely face challenges too. As the business expands, it gets harder to keep up that growth. And the economy could bring bumps they’ll need that reserve cash for. But so far, they’re headed in a good direction – making more profit while bracing for potential hardship. We’ll have to keep watching to see how they handle the future opportunities and hurdles. For now, they seem to be taking a balanced approach.
Final words on BSE Share Price target upto 2030
BSE share price target is expected to reach new high each year reaching ₹3500 by the end of 2030. There is huge growth potential in Indian Financial markets. As more and more people are getting into investing and trading, the demand for services which BSE provides will keep rising.
Frequently Asked Questions on BSE
What is valuation of BSE Ltd ?
BSE is at a premium valuation right now, with a PE ratio of 23.34. But if we compare the PE Ratio of BSE to its peers, its lower as the sector PE is 58.11.
Can you invest in BSE for swing trading?
BSE is currently at a breakout level with high momentum and increasing volume making it a good choice of stock to invest for swing trading.
What is Piotroski Score of BSE?
The Piotroski Score of BSE is 7 indicating strong financials.
