MOSL: BSE (Buy)-Earnings reflective of FY18 market momentum-Emergence of new revenue streams like MF platform is positive
BSE: Earnings reflective of FY18 market momentum; Emergence of new revenue streams like MF platform is positive
(BSE IN, Mkt Cap USD0.9b, CMP INR818, TP INR1000, 22% Upside, Buy)
- 4QFY18 results exceed expectations: 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%.
- New segments continue building momentum: Average daily traded contracts in INX were 10,248 in December 2017, up significantly from a range of 2,000-4,000 in the previous months. This was partly helped by liquidity-enhancement incentives introduced in the segment since November. Listing-related income from SMEs increased 44% YoY. 9MFY18 turnover was up 87% here. MF orders on BSE's Star MF platform increased 154% YoY. Likewise, ADT was up by 65% in interest rate futures YoY and by 29% YoY in currency derivatives for 9MFY18.
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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