BSE Stock Slips Nearly 20% From Highs: SEBI RAs Caution On Valuation, Technical Breakdown

Shares of BSE have come under pressure amid a broader selloff in capital market stocks following SEBI’s enforcement action against U.S. trading firm Jane Street for alleged manipulation of stock indices via derivatives trades. 

At the time of writing, shares of BSE were down 5.8% at ₹2,483.80. It has shed nearly 15% in the last few sessions since the SEBI ban on Jane Street, and is down nearly 20% from its 52-week high. 

The regulator’s intensified scrutiny of the F&O segment has added to near-term volatility across the sector.

The company saw a sharp rally in FY25, with analysts pointing to stretched valuations, regulatory concerns, and early signs of technical weakness. 

SEBI-registered research analyst Vijay Kumar Gupta said BSE delivered “phenomenal” growth last year, supported by structural reforms and increased market activity. 

Revenue more than doubled to ₹3,236 crore in FY25, and net profit surged to ₹1,317 crore. 

Profit after tax came in at ₹493 crore in fourth-quarter (Q4), marking a multi-quarter high, while core profit margins crossed 70%. 

Gupta noted that the exchange remains virtually debt-free, with return on equity near 34% and Return on capital employed (ROCE) around 43%.

BSE declared a final dividend of ₹18 per share and a ₹5 special dividend, alongside a 2:1 bonus issue. 

However, Gupta cautioned that the stock now trades at a P/E of around 76x and a P/B of 24x — well above its peers, such as Nasdaq Inc., HKEX, and the LSE Group. 

On a discounted cash flow basis, he said valuations look stretched. 

He also flagged a recent SEBI penalty and compliance concerns as weighing on sentiment, despite long-term value drivers like tech initiatives, outreach with brokerages, and possible demergers.

From a technical perspective, Gupta said BSE is consolidating near ₹2,470 after falling sharply from recent highs. 

He marked support at ₹2,500–₹2,630 and resistance at ₹2,730–₹2,870, with a breakout above ₹2,900 needed to revive bullish momentum. He characterized the current phase as cooling off — not a structural reversal.

SEBI RA Sunil Kotak echoed this by noting that BSE had historically rebounded from its 50-week simple moving average, which it’s now approaching again. 

Meanwhile, SEBI RA Prabhat Mittal flagged a technical breakdown in the stock.

The stock has risen 37.3% so far in 2025.

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