BSE Q3 Results Review - Contribution To SGF Reduces Profitability: Motilal Oswal

Motilal Oswal Report

BSE Ltd. reported a profit after tax of Rs 1.06 billion in Q3 FY24 (23% below our estimate), up 124% YoY but down 10% QoQ, mainly owing to its contribution of Rs 917 million to settlement guarantee fund for the currency derivatives segment.

Operating revenue grew 18% QoQ and 82% YoY to Rs 3.7 billion, broadly in line with our estimate.

After the relaunch, derivative contracts (Sensex and Bankex) are witnessing significant traction from market participants. BSE has increased transaction charges on Sensex options (only on near expiry), with effect from November 01, 2023. Thus, the derivative segment would see strong revenue growth.

We have upgraded our earnings per share estimates by 7%/6% for FY25/FY26 to factor in the higher volume trajectory for its equity derivatives segment.

Reiterate our Neutral rating with a one-year target price of Rs 2,725 (based on 35 times FY26E earnings per share).

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.