Analysts, however, warn these stocks might be overbought after the recent run up. “… when markets are bullish, brokers, dealers and other intermediaries, tend to benefit because their cost structures are such that when topline improves, profitability goes through the roof,” said Sahil Kapoor, market strategist at DSP Mutual Fund.
On a year-to-date basis, shares of CAMS have risen more than 26%, while those of CDSL are up more than 62%. Shares BSE have soared 322%.
“Valuations for BSE are really stretched, and while there are no concerns from a fundamental perspective, buying at the current levels may not give very strong returns,” said Sneha Poddar, associate vice-president, Motilal Oswal Financial Services.
Poddar has a target of ₹2,250 for BSE with a ‘neutral’ rating, and sees an upside of around 10-15% from the current levels for CAMS and CDSL.
“BSE and CDSL are quite overbought, and BSE can see some profit booking in the near term,” said Vaishali Parekh, vice president, Prabhudas Lilladher. She sees a lot of “upside potential” for CAMS and has a target price of ₹3,000. Parekh has a target of ₹2,600 for BSE, and ₹2,100 for CDSL over a three-month period.
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