MOSL: BSE (Buy)-Operational miss led by market volatility
BSE: Operational miss led by market volatility
(BSE IN, Mkt Cap USD0.4b, CMP INR569, TP INR720, 26% Upside, Buy)
Star MF remains the key
- Equity cash volumes increased marginally QoQ in 3QFY20. Revenue was largely driven by strong traction in the Star MF platform and the decent performance in corporate services. In Dec'19, BSE monetized 4% stake in CDSL, which resulted in higher reported PAT.
- Our EPS estimates over FY20-22 are largely unchanged. Reiterate Buy.
Miss at operational level; beat on reported PAT led by stake sale in CDSL
- Total equity cash volumes were up 4% QoQ at INR25b, but transaction charges declined 3% QoQ to INR263m owing to the one-time gain in the base quarter. Realizations did not change meaningfully.
- Revenue growth was mainly led by strong traction in Star MF.
- Revenue from service to corporates increased 6% QoQ to INR545m, mainly due to higher listing fee revenue.
- EBIT loss for the quarter was flat QoQ at INR182m.
- PBT before exceptional items declined by 63% YoY to INR 196m.
- BSE monetized 4% stake in CDSL. In conjunction with certain provision reversals from earlier periods, non-recurring PAT amounted to INR456m.
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 trading of securities and the activities incidental there to, 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 Clearing Corporation Limited (ICCL) and CDSL Ventures Limited. The Company offers the SCORES system, which is a Web based system where investors can lodge their complaints online.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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