BSE Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for BSE, BSE Ltd.

BSE Ltd.

03 Aug 2019

6439.00

3.16%

BSE (1QFY20): Investing for the future. Maintain BUY

Buy: BSE Ltd.

Target

HDFC Securities

BSE has been investing in future growth drivers like INX, Insurance distribution, SME and StAR MF. Out of these only StAR MF has started generating revenue while the rest would need more time. Incremental revenue from StAR MF, volume revival and higher listing fee should lead to revenue growth of 11.1/11.8% in FY20/21E. We expect some operating leverage to play out with growth (EBITDA margin of 11.4/15.8% for FY20/21E). The stock is down 23% in the last 3M due to stress in the tradition revenue stream, continued investments despite slowdown and buyback tax. Value is emerging with net cash of Rs 20bn (~80% of MCap) and a dividend yield of ~7%. Risks include a rise in competition, loss of market share and an increase in investments. We maintain BUY on BSE based on in-line revenue and better margins. Increasing revenue contribution from StAR MF platform and rise in listing fee (exclusively listed) are positives. Buyback of Rs 4.6bn will be completed and tax applicable is only Rs 0.12bn (~3%). We arrive at a SoTP of Rs 655 at 25x core FY21E PAT plus Rs 134/share for stake in CDSL plus net-cash (ex-buyback and with 20% discount).

BSE Ltd. has gained 50.68% in the last 6 Months

BSE Ltd.

19 Jul 2019

6439.00

3.16%

BSE LTD- Buyback Update

BSE Ltd.

IDBI Capital

BSE Limited (BSE) is an India-based stock exchange company. BSE provides a transparent market for trading in equity, debt instruments, derivatives and mutual funds. The Company consists of two business segments: Stock Exchange activity and Depository activity. Stock exchange activity is engaged in facilitating the trading of securities and the activities incidental thereto, and Depository activity provides depository-related services. It also has a platform for trading in equities of small and medium enterprises (SME). BSE also provides various services to capital market participants, including risk management, clearing, settlement, market data services and education. The Company's subsidiaries include Marketplace Technologies Private Limited, Central Depository Services (India) Limited (CDSL), Indian...

Number of FII/FPI investors increased from 746 to 893 in Mar 2025 qtr.

BSE Ltd.

03 Feb 2019

6439.00

3.16%

BSE Ltd (3QFY19): Phase of reinvention. Maintain BUY

Buy: BSE Ltd.

Target

HDFC Securities

Maintain BUY with SoTP of Rs 758 by assigning 25x to Dec-20E core PAT (ex-CDSL), Rs 120/share for the CDSL stake plus net cash. BSE reported weak 3QFY19, with revenue down 9.1% QoQ to Rs 1.05bn. There is visible weakness in core business streams (across listing fees, cash equity and even currencies, where BSE was dominant). BSE continues to lose equity cash market share (-43 bps QoQ to 8.3%), while its grip on currency derivatives also loosened this quarter (-326bps QoQ to 44.0% share). Drop in revenues and ongoing investments in new initiatives led to steep fall in EBITDA margin, (adjusted margin stood at 1% down 796bps QoQ).

Number of MF schemes increased from 136 to 149 in Mar 2025 qtr.

BSE Ltd.

05 Nov 2018

6439.00

3.16%

BSE (2QFY19): Bumpy ride to reinvention. Maintain BUY

Buy: BSE Ltd.

Target

HDFC Securities

Maintain BUY with SoTP of Rs 871 at assign 25x (vs. 30x earlier) on Sep-20E core PAT (ex-CDSL), Rs 129/sh for the CDSL stake plus cash. BSE stumbled in 2QFY19, with revenue crawling up 0.3% QoQ to Rs 1.15bn. There is visible weakness in core business streams (across listing fees, cash equity and even currencies, where BSE is dominant). BSE continues to lose equity cash market share (-117 bps QoQ to 8.7%), while its grip on currency derivatives also loosened this quarter (-469bps QoQ to 47.3% share).

BSE Ltd. has gained 101.23% in the last 1 Year

BSE Ltd.

02 Nov 2018

6439.00

3.16%

PAT dragged by one-time expenses???

Buy: BSE Ltd.

Target

Motilal Oswal

2 November 2018 consolidated operating revenues grew 1.2% YoY to INR1.12b, below our estimate of INR1.2b. The miss was on account of lower other revenues which includes Rent, Training, Recovery charges, etc. Operating revenues exclude Treasury Income from Clearing Corporation. EBITDA at INR93m was below our estimate of INR167m, but included one-time charges totaling INR74m from [1] provision for investment in IL&FS;, and [2] provision for bad debts. Adjusted for the same, EBITDA would have been in line. PAT was INR459m (-31% YoY), 12% miss, which again would have been in line adjusted for the one-offs. revenue grew 1% YoY, revenues from equity cash transactions fell 33% YoY to INR218m, owing to prevailing market conditions. The same is the case for Book Building services too, down 28% YoY to INR72m. Annual listing fees, an annuity in nature, grew 10% YoY to INR472m.

BSE Ltd. has gained 34.71% in the last 1 Month

BSE Ltd.

04 Aug 2018

6439.00

3.16%

BSE (1QFY19): Down, but not out! Maintain BUY

Buy: BSE Ltd.

Target

HDFC Securities

We still see value based on (1) Huge net cash of Rs 26bn (~Rs 509/sh, ~62% of MCap), (2) Increased contribution from new growth engines, and (3) High dividend yield of 4.4%. We maintain BUY on BSE, and our SoTP for BSE factors in Rs 126/sh for CDSL, assigns 30x to FY20E core PAT (ex-CDSL) and add back net cash, which works out to Rs 1,090 (32% upside). BSE posted lower-than-expected numbers in 1QFY19 both on the revenue and margin fronts. Revenue was down 19.2% QoQ to Rs 1.17bn (our est. was Rs 1.38bn), led by 42.2% QoQ fall in transaction revenue (23% of rev) and 9.7% QoQ fall in services to corporate (48% of rev). Exclusive cash segment ADTV slipped 50% QoQ due to weak market conditions and ASM while currency derivative ADTV was up 45.7% QoQ.

BSE Ltd. has gained 50.68% in the last 6 Months

BSE Ltd.

07 May 2018

6439.00

3.16%

BSE Ltd (4QFY18): Robust growth continues. Maintain BUY

Buy: BSE Ltd.

Target

HDFC Securities

We maintain BUY on BSE, and our SoTP for BSE factors in Rs 137/sh for CDSL, assigns 30x to FY20E core PAT (ex-CDSL) and add back net cash, which works out to Rs 1,190 (45% upside). BSE posted better-than-expected numbers in 4QFY18 both on the revenue and margin fronts. Revenue was up 8.6% QoQ to Rs 1.37bn (our est. was Rs 1.27bn), led by 8.2% QoQ rise in transaction revenue (35% of rev) and 7.4% QoQ rise in services to corporate (45% of rev). Exclusive cash segment/Currency Derivative ADTV was up 23/40% YoY in FY18. Margin improved 133bps QoQ to 28.1% (ex one-off) vs. our expectation of 25.0%, led by non-linearity. Margin improvement in FY18 was impressive, +1671 bps YoY to 21.0%.

BSE Ltd. has gained 34.71% in the last 1 Month

BSE Ltd.

04 May 2018

6439.00

3.16%

BSE: Earnings reflective of FY18 market momentum

Buy: BSE Ltd.

Target

Motilal Oswal

BSE's 4QFY18 consol. revenue grew 25% YoY to INR1.39b (excl. investment income), above our estimate of INR1.2b, led by continued growth in Services to corporates (+30% YoY). However, EBITDA margin of 20.1% missed our estimate by 130bp due to a surge in other expenses (incl. regulatory fees, CSR and one-time repairs to the building). PAT of INR622m was above our estimate of INR577m, mainly led by better revenues and higher other income. FY18 revenues grew 29%, EBITDA was up almost 5x and adj. PAT rose 30%

BSE Ltd. has gained 50.68% in the last 6 Months

BSE Ltd.

03 Apr 2018

6439.00

3.16%

BSE: Going anti-tide, pro-value

Buy: BSE Ltd.

Motilal Oswal

BSE has started charging 32 of the 37 asset management companies (AMCs) for services through its mutual fund (MF) platform. This could be an INR150m-200mrevenue opportunity in the next fiscal; however,being the first year, we are currently modeling INR100m revenues from the segment. With ~50% of equity transaction revenues from exclusive segments, dependence one quity transactions where BSE is a distant second to NSE, is <15%. BSE cited that volumes in the exclusively-listed segment are inelastic to transaction charges, and hence, it does not feel the need to reduce the current fee. We note that BSE should be paying out 85%+ of its non-exceptional profits as dividends. And any buybacks like the one currently underway will be over and above the dividends. The combination will keep yields attractive (currently ~5%)

BSE Ltd. has an average target of 4961.00 from 2 brokers.

BSE Ltd.

05 Feb 2018

6439.00

3.16%

Bombay Stock Exchange (3QFY18): Sailing in the right direction. Maintain BUY

Buy: BSE Ltd.

Target

HDFC Securities

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.

BSE Ltd. has gained 34.71% in the last 1 Month

Is BSE Ltd. worth buying?

1075 Votes:

Buy 77.49%

Sell 11.63%

Hold 10.88%

RESEARCH REPORTS

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Neutral SEE REPORTS >

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