BSE Ltd. share price target and research reports

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

BSE Ltd.

02 Nov 2018

2765.00

0.51%

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. is trading above all available SMAs

BSE Ltd.

04 Aug 2018, 01:19PM

2765.00

0.51%

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 has gained 24.89% in the last 3 Months

BSE Ltd.

07 May 2018

2765.00

0.51%

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. is trading above all available SMAs

BSE Ltd.

04 May 2018, 12:00AM

2765.00

0.51%

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 has gained 24.89% in the last 3 Months

BSE Ltd.

03 Apr 2018, 12:00AM

2765.00

0.51%

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 2687.33 from 3 brokers.

BSE Ltd.

05 Feb 2018

2765.00

0.51%

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. is trading above all available SMAs

BSE Ltd.

04 Jan 2018, 12:00AM

2765.00

0.51%

Light House - A Quick Perspective - BSE Ltd. - 04 January 2018

Buy: BSE Ltd.

Way2Wealth

Transaction revenue from exclusively listed stocks BSE has a monopoly with 12001500 actively traded exclusively listed stocks. Taking advantage of this monopoly, BSE took a steep price hike in FY16 from `125/10mn to `10000/10mn. This led to a sharp jump in the illiquid cash equity revenue which now constitute 50% of total cash equity transaction...

Institutional Investors have increased holdings from 29.41% to 36.26% in Sep 2025 qtr.

BSE Ltd.

06 Nov 2017

2765.00

0.51%

Bombay Stock Exchange (2QFY18): Strong operational performance. Maintain BUY

Buy: BSE Ltd.

Target

HDFC Securities

We maintain BUY on BSE, and our SoTP for BSE factors Rs 430/sh from CDSL and assigns 25x to Sep-19 earnings (ex-CDSL), which works out to Rs 1,206 (22% upside from CMP). Bombay Stock Exchange Ltd (BSE) posted better-than-expected numbers in 2QFY18, on both the revenue and margin fronts. Revenue was up 7.9% QoQ to Rs 1.11bn (our est. was Rs 1.06bn), led by 11.3% up-tick in services to corporates (48% of rev) and 10.4% QoQ rise in transaction revenue (32% of rev). Margin improvement was sharp (+797bps QoQ to 23.4% vs. our estimate of 15.7%), led by a cut in tech expenses.

BSE Ltd. is trading above all available SMAs

BSE Ltd.

29 Aug 2017

2765.00

0.51%

Bombay Stock Exchange (Initiating Coverage): Bombay renaissance* BUY

Buy: BSE Ltd.

HDFC Securities

At 23/22x FY18/19E earnings (a significant discount to MCX (39/32x FY18/19E EPS) and at par with global averages, BSE merits a BUY. Our SoTP for BSE factors Rs 430/sh from CDSL and assigns 25x to Sep-19 earnings (ex-CDSL) and works out to Rs 1,200 (22% upside from CMP). The Bombay Stock Exchange Ltd (BSE) is Asias oldest stock exchange (estd. 1875 and listed in Feb-17). Long term investors should take cognizance of its recent (if overdue) renaissance under a market savvy management, including its recent listing. With the latest technology platform (6 microsecond response time), BSE claims to be ten times faster than NSE (its much larger competitor).