Day: May 8, 2025

Shares of BSE Limited hit a new high of ₹6,890, as they rallied 3.6 per cent on the National Stock Exchange (NSE) in Thursday’s intra-day trade. In the past two trading days, the stock price of the exchange and data platform company has surged 10 per cent after the company posted a multi-fold jump in net profit for the quarter ended March 2025 (Q4FY25). 

In the past one month, the BSE has outperformed the market by gaining 24 per cent, as compared to 8 per cent rise in the Nifty 50. The stock has zoomed 87 per cent from its March month low of ₹3,682. It has skyrocketed 226 per cent from its 52-week low price of ₹2,115 touched on July 23, 2024, NSE data shows.

Since March 28, the market price of India’s oldest stock exchange, BSE has appreciated by 47 per cent after its rival–NSE–deferred its plan to change the day of expiring of its contracts from Thursday to Monday. This comes after the release of a consultation paper from market regulator Securities and Exchange Board of India (Sebi).

Market capitalisation nears ₹1 trillion

The up move in the stock price of the company has seen BSE’s market capitalisation (market cap) inches towards ₹1 trillion. BSE’s market cap hit ₹93,444 crore in intra-day trade today, and less than 7 per cent away from the landmark ₹1 trillion market cap feat.

At 10:39 AM, BSE’s market cap stood at ₹92,800 crore on the NSE, exchange data shows. The stock was trading 3 per cent higher at ₹6,846.50, with 2.6 million equity shares changing hands on the counter.

BSE Q4 results

The stock exchange reported a net profit of ₹493 crore during the March quarter, compared to a net profit of ₹105 crore in the year-ago period. Its revenue from operations grew 74.9 per cent year-on-year (YoY) at ₹846.70 crore, driven by growth in transaction charges/ service to corporate/ other operating income. Earnings before interest, taxes, depreciation, and amortisation (Ebitda) margin expanded to 57.2 per cent from 19.8 per cent in Q4FY24.

BSE aims to add 200 colocation racks before the end of FY26, taking the total count to 500 racks. While the company has introduced a per-order rate on a pilot basis, the aim is to develop a flexible revenue model for different customer cohorts.

Brokerage view – Motilal Oswal Financial Services

Future & Option (F&O) regulations have been beneficial for BSE with respect to a rise in non-expiry trading activity, leading to improvement in premium turnover. Decline in notional turnover boosted the profitability with lower regulatory costs. Increased member participation, colocation monetisation, and sustained momentum in premium turnover will be key growth drivers for BSE.

“We have revised our premium average daily turnover (ADTO) estimates to ₹15,700 crore/ ₹19,000 crore for FY26/ 27 with further headroom for increase as premium ADTO for April 2025 was at ₹15,500 crore. We raise our earnings estimates by 9 per cent/ 13 per cent for FY26/FY27. We reiterate our Buy rating on the stock with a target price of ₹7,600 (premised on 45x FY27E EPS),” the brokerage firm said in the Q4 result update.

About BSE

The Bombay Stock Exchange (BSE) is Asia’s largest and oldest stock exchange, serving as a platform for trading various financial instruments like stocks, currencies, and derivatives. Comprising some of the most actively traded and liquid stocks, BSE Sensex is the benchmark index in the country. Significantly impacting the Indian economy, it is a barometer of India’s financial performance.

Over the years, the BSE has introduced several new products and services, including currency trading, debt, equity, mutual funds, investment banking, etc. BSE has been a crucial player in the country’s economic development because of its efficient trading systems, solid technology infrastructure, and high accountability and transparency.

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The Indian equity market seems to be holding its ground fairly well amid the rising India-Pakistan border tensions. The NSE Nifty 50 index has gained 1 per cent since the terror strike in Kashmir’s Pahalgam on April 22, which left 26 civilians dead. Even on Wednesday May 7, post India’s ‘Operation Sindoor’ on Pakistan, and Pakistan-occupied-Kashmir (PoK) terror sites, the Nifty ended the day on a positive note, with mild gains. Historical data shows that the market has delivered steady gains in the one-month period post past similar India-Pakistan conflicts. The NSE Nifty for instance has delivered an average gain of 4.7 per cent in the one-month period after past five such India-Pakistan clashes namely – the 1999 Kargil war, 2001 Parliament attack, 2008 Mumbai 26/11 terror strike, Uri Attack in 2016 and Pulwama & Balakot strikes in 2019.

According to ACE Equity data, there are a total 262 common stocks that were traded on the NSE during all 5 India-Pakistan conflicts. Here’s an analysis on these 262 commonly traded stocks on the NSE during the last 5 India-Pakistan conflicts: Data shows that 26.3 per cent of the commonly traded stocks in these periods, i.e. 69 out of the 262 stocks logged an average gain of over 10 per cent in the one month period post start of India-Pakistan conflicts. Out of which, 14 stocks had registered an average gain in excess of 20 per cent.

Here’s a list of top gainers & losers during the past India-Pakistan conflicts – 

Kesoram Industries logged an average gain of 33.5 per cent, and was the standout performer among the 262 stocks. The stock was closely followed by Hindustan Motors, which delivered an average gain of 31 per cent in the one-month period post the last 5 India-Pakistan clashes. That apart, a total of 12 stocks investments made investors’ richer by 20 – 25 per cent. Prominent names among these were – Trent, Raymond, BPCL, Ashok Leyland, Gujarat Mineral Development (GMDC) and Century Enka.

Among the balance stocks that rose more than 10 per cent in similar one-month periods – well-known stocks were – Rolta India, ACC, Bombay Dyeing, SBI, Tata Steel, Bharat Electronics, Kotak Mahindra Bank, Grasim Industries, CG Power and Industries, Balrampur Chini, India Cements, ICICI Bank, Tata Motors, HPCL, Container Corporation, Shree Cement, Vedanta, Aurobindo Pharma, Indian Oil and Reliance Industries.

On the flip side, mere 8 out of the 262 commonly traded stocks delivered an average negative return in excess of 5 per cent. Ashima down 8.5 per cent was the consistent loser. Tamilnadu Telecommunications, Natco Pharma, ITI, Kothari Products, Onward Technologies, Tata Elxsi and Hexaware Technologies were the other key laggards.

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Dr Reddy’s Q4 results preview: Pharmaceutical major Dr Reddy’s Laboratories is expected to report a solid year-on-year (Y-o-Y) growth in both revenue and profit for March 2025 quarter (Q4FY25) on the back of Nicotinell acquisition, persistent US business growth, and expectations of a favourable business back home. 

Dr Reddy’s Labs Q4 results date:

The company is scheduled to announce its fourth quarter results on Friday, May 9. 2025.

Dr Reddy’s Labs Q4 results: Profit expectations

According to brokerages tracked by Business Standard, Dr Reddy’s net profit is expected to come at ₹1,456.5 crore, marking around 18.6 per cent Y-o-Y increase, on average, as against ₹1,227.8 crore in the year-ago period (Q4 FY24). On a quarterly (Q-o-Q) basis, the company’s bottomline is projected to grow by an average of nearly 3 per cent.

Dr Reddy’s Labs Q4 results: Revenue expectations 

The pharma major’s revenue for the quarter under review is expected to increase 17.07 per cent to ₹8,328.26 crore, on average, as compared to ₹7,113.8 crore in the corresponding quarter of the previous fiscal. On a sequential basis, revenue is expected to remain flattish compared to ₹8,358.6 crore in the December 2024 quarter. 

Brokerages expected the company’s earnings before interest, tax, depreciation and amortisation (Ebitda) to increase nearly 25 per cent to ₹2,311.5 crore in Q4FY25 compared to ₹1,849.8 crore in the year-ago period. 

Here’s how analysts expect Dr Reddy to perform in Q4 FY25:

Phillip Capital: Analysts at Phillip Capital expect Dr Reddy’s Labs to post a robust topline growth led by integration of Haleon OTC business acquisition along with benefits of gRevlimid. The company is a proven lead beneficiary of gRevlimid amongst its competitors and continues to lead the sales with $160 million from gRevlimid. Domestic business is expected to benefit from the Sanofi vaccine licensing deal, and joint venture (JV) with Nestle. In addition, steady growth in US base business sales, integration of Nicotinell and 13 per cent growth in India will also boost topline growth.

The brokerage expects Ebitda margins to improve 210 basis points Y-o-Y to 28.2 per cent mainly driven by higher gRevlimid sales and strong growth in domestic formulation business, leading to a 33 per cent Y-o-Y growth in Ebitda. 

Nirmal Bang Institutional Equities: The domestic brokerage firm expects Dr Reddy’s revenue to increase 17.5 per cent Y-o-Y, mainly on account of NRT brand Nicotinell acquisition. US revenue is expected to grow 7 per cent Y-o-Y to $410 million. India business should increase by 24 per cent Y-o-Y on account of expectations of a favorable season and a marginal uptick in the cardiology and GI segment. 

HDFC Securities: Analysts at HDFC Securities expect the pharma major’s US business to grow by 4 per cent Q-o-Q due to gRevlimid sales, which will be partly offset by price and market share erosion in the base business price due to incremental competition in key products. India business is likely to increase by 15 per cent Y-o-Y on account of incremental sales from acquired vaccine business from Sanofi. 

 “We have factored NRT business. We expect gross margin and Ebitda margin to remain steady,” the brokerage said.

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