We maintain BUY on BSE, and our SoTP for BSE factors in Rs 148/share for CDSL and assigns 25x to Dec-19 earnings (ex-CDSL), which works out to Rs 1,210 (+43% upside). Bombay Stock Exchange Ltd (BSE) posted better-than-expected numbers in 3QFY18, on both the revenue and margin fronts. Revenue was up 12.7% QoQ to Rs 1.26bn (our est. was Rs 1.15bn), led by 24.8% QoQ rise in transaction revenue (35% of rev) and 8.9% QoQ rise in services to corporate (46% of rev). Change in transaction charges to Rs 1.5/trade and robust growth in exclusive listed shares volume (+51% QoQ) led to a rise in transaction revenue. Margin improvement was sharp (+281bps QoQ to 26.8% vs. our est. of 24.2%), led by non-linearity.