Mutual Funds News share price target

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 will require more investments. Incremental revenue from new platforms, volume revival and higher listing fee should lead on to revenue growth of 13.0/10.4% in FY20/21E. We expect some operating leverage to play out with growth (EBITDA margin of 13.0/17.0% for FY20/21E). Buyback size is healthy (~2.8x of last buyback) and will boost return ratios by ~100bps. We sense value emerging, with (1) Net cash of Rs 24bn (~73% of MCap), (2) New growth engines, and (3) High dividend yield of ~5%. Risks include rise in competition and loss of market share. We maintain BUY on BSE on based on better than expected quarter. The buyback of Rs 4.6bn (~14% of Mcap) at Rs 680/sh is a positive. We arrive at a SoTP based TP of Rs 802 by assigning on 25x to core FY21E PAT, Rs 149/share for the CDSL stake and adding net cash.

Equity Mutual Funds (including ELSS) reported a rebound in inflows to the tune of Rs 11,756 cr in March 2019 Net inflows into equity mutual funds jumped by as much as 130% from a net inflow of Rs 5,122 cr. in February 2019 Balanced funds faced a higher net outflow of Rs 3,181 cr. in March 2019, versus an outflow of Rs 1,077 cr. in the month prior. Despite the strong inflows into mutual funds, as per SEBI data, Mutual Funds were net sellers of stocks, selling as much as Rs 6,348 cr. in March 2019, as compared to a buying of Rs 7,020 cr. reported in February 2019. Mutual Funds were net sellers of Indian stocks for the first time since July 2016....

Equity Mutual Funds (including ELSS) reported a rebound in inflows to the tune of Rs 11,756 cr in March 2019 Net inflows into equity mutual funds jumped by as much as 130% from a net inflow of Rs 5,122 cr. in February 2019 Balanced funds faced a higher net outflow of Rs 3,181 cr. in March 2019, versus an outflow of Rs 1,077 cr. in the month prior. Despite the strong inflows into mutual funds, as per SEBI data, Mutual Funds were net sellers of stocks, selling as much as Rs 6,348 cr. in March 2019, as compared to a buying of Rs 7,020 cr. reported in February 2019. Mutual Funds were net sellers of Indian stocks for the first time since July 2016....

Equity Mutual Funds (including ELSS) reported a rebound in inflows to the tune of Rs 11,756 cr in March 2019 Net inflows into equity mutual funds jumped by as much as 130% from a net inflow of Rs 5,122 cr. in February 2019 Balanced funds faced a higher net outflow of Rs 3,181 cr. in March 2019, versus an outflow of Rs 1,077 cr. in the month prior. Despite the strong inflows into mutual funds, as per SEBI data, Mutual Funds were net sellers of stocks, selling as much as Rs 6,348 cr. in March 2019, as compared to a buying of Rs 7,020 cr. reported in February 2019. Mutual Funds were net sellers of Indian stocks for the first time since July 2016....

However, as per SEBI data, Mutual Fund net purchases of stocks moved higher to Rs 7,020 cr. in February 2019, as compared to a buying of Rs 6,542 cr. reported in January 2019. On calculating the imputed inflows into different market cap categories, we find that fund houses invested a large proportion of their assets in Large-cap^ stocks. About 75% of the assets was invested in Large Caps. About 23% of inflows was invested in Mid Caps, while Small Caps received 2% of the total inflows.....

However, as per SEBI data, Mutual Fund net purchases of stocks moved higher to Rs 7,020 cr. in February 2019, as compared to a buying of Rs 6,542 cr. reported in January 2019. On calculating the imputed inflows into different market cap categories, we find that fund houses invested a large proportion of their assets in Large-cap^ stocks. About 75% of the assets was invested in Large Caps. About 23% of inflows was invested in Mid Caps, while Small Caps received 2% of the total inflows.....