BSE Ltd. stock surged nearly 11 percent to Rs.2,657 per share after reporting a 150 percent increase in net profits quarter-on-quarter. The share has generated returns of around 200 percent in a year.
Price Movement
On Thursday’s trading session, the share price of BSE Ltd. gained 10.77 percent reaching an intra-day high of Rs.2,657 per share from its previous closing price of Rs.2,398.55 apiece.
Financial Performance
The uptrend in the stock price was driven by the robust financial growth of stocks listed in BSE Ltd. With a market capitalization of Rs.34,941 crores, BSE Ltd. reported consolidated revenue of Rs.671 crores for the quarter ending June 2024. This marks a staggering 158 percent increase from Rs.260 crores in the same quarter last year and a 23 percent rise from Rs.545 crores in Q4 FY24.
The company saw a 40 percent year-over-year decline in Profit After Tax (PAT), reaching Rs.264 crores in Q1 FY25, down from Rs.440 crores in the June 2023 quarter. However, on a quarterly basis, PAT increased remarkably by 147 percent from Rs.107 crores in Q4 FY24.
The key highlight for the quarter was BSE’s EBITDA margin jumping to 52 percent, up from 28 percent in the March quarter. The average daily turnover in the equity cash segment for the first quarter stood at Rs.9,006 crore, as compared to Rs 4,025 crore in the corresponding quarter of the previous year.
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Management Commentary
“We have finished the first quarter strongly, with every business line contributing to revenue and profitability. This reflects the strength of our proposition, the improvements we have made to our products, and the depth of our relationships with customers,” said BSE MD and CEO Sundararaman Ramamurthy.
Target recommendation
Motilal Oswal has recommended a target price for BSE Ltd. at Rs.2,725, up from the previous target of Rs.2,599. MOFSL maintained a ‘Neutral’ rating on the stock with an upside potential of 5 percent.
Brokerage firm believes the re-launch of BSE derivatives products has turned out to be a trend-changing measure. Increased member participation, new product launches (stock derivatives), rising awareness about products, and a recent launch of stock derivatives would continue to drive market share gains for BSE according to MOFSL.
About BSE
BSE Limited is a stock exchange based in India. The company operates as a transparent market for trading equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds, and stock lending and borrowing.
Written by – Siddesh S Raskar
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