Motilal Oswal Maintains ‘Neutral’ View on BSE, Sets Price Target at ₹2,300

Motilal Oswal Reiterates Neutral Rating on BSE, Targets ₹2,300 Amid Valuation Caution

Brokerage firm Motilal Oswal Financial Services has reiterated a ‘Neutral’ stance on the stock of Bombay Stock Exchange (BSE), assigning it a revised target price of ₹2,300. The outlook reflects a balanced view of BSE’s potential in emerging business segments and the pressures from its current valuation levels.

While acknowledging BSE’s recent operational improvements and the growing traction in the derivatives and mutual fund businesses, Motilal Oswal cited concerns over sustainability of margins and the expensive valuation compared to peers.

The report noted that although BSE has shown positive growth momentum in newer offerings, including the futures and options (F&O) segment, the core cash segment’s performance remains underwhelming. The growth in MF StAR (mutual fund distribution platform) and INX (India International Exchange) is also promising, but analysts feel these may take time to meaningfully contribute to overall revenues.

Motilal Oswal further emphasized that the stock already reflects much of the optimistic outlook in its price, limiting near-term upside potential. Investors are advised to monitor upcoming earnings closely and watch how BSE continues to expand its high-growth verticals.