During Wednesday’s trading session, the shares of Asia’s first Stock Exchange and one of India’s leading exchange groups surged by around 2.4 percent to Rs. 4,789 on NSE, after reporting Q2 FY25 results with a rise in net profit by 31 percent QoQ and 192 percent YoY.
With a market cap of Rs. 62,258.2 crores, the shares of Bombay Stock Exchange (BSE) Limited opened in the green at Rs. 4,737.55, up by nearly 1.3 percent, as compared to its previous closing price of Rs. 4,678.2.
What’s the news:
The fluctuations in the share prices were observed after BSE Limited announced the financial results for Q2 FY25, through the latest filings with the stock exchanges on Tuesday post-market hours.
For Q2 FY25, BSE reported revenue from operations of Rs. 746.3 crores, reflecting a significant growth of around 23 percent QoQ from Rs. 607.7 crores in Q1 FY25, and increased by about 137.3 percent YoY from Rs. 314.5 crores in Q2 FY24.
The company’s net profit for Q2 FY25 grew to Rs. 345.8 crores, representing a rise of around 31 percent QoQ from Rs. 264.3 crores in Q1 FY25, and a year-on-year growth of nearly 192 percent from Rs. 118.4 crores in Q2 FY24.
Operating EBITDA for Q2 FY25 stood at Rs. 388.8 crores, reflecting about 192 percent YoY increase from Rs. 133.2 crores in Q2 FY24, while the operating EBITDA margin improved significantly, rising from 42 percent to 52 percent, over the same period.
Further, in continuation of the intimation dated 8th May, in which the Board of BSE Limited had granted its in-principle approval for the disinvestment of BSE’s holding in BSE Institute Limited, it has been announced that the sale of the entire 100 percent stake in BSE Institute Limited has now been approved.
Brokerage Target:
The international brokerage firm Jefferies downgraded the stock with an “underperform” rating on BSE Limited from its previous “hold” rating. However, it raised the price target to Rs. 3,500 from Rs. 2,850 per share, implying a 24 percent downside from the current market price.
The company reported strong growth in its Q2 earnings, with a threefold increase compared to the previous year, largely driven by effective cost management that boosted margins, according to the international brokerage.
However, Jefferies remains cautious in its outlook, citing concerns about the potential effects of SEBI’s new F&O regulations on trading volumes. The brokerage views the risk-reward profile in the near term as unfavourable, advising investors to adopt a cautious approach to the stock.
Shareholding Pattern:
As per the September 2024 shareholding pattern, Foreign Institutional Investors (FII) hold a 13.01 percent stake, while Retail Investors hold 52.4 percent, Domestic Institutional Investors (DII) hold 11.68 percent, and the remaining 22.9 percent is held by other stakeholders in BSE.
Stock Performance:
The stock has delivered a positive returns of nearly 97.2 percent in one year, as well as around 76.3 percent returns in the last six months. So far in 2024, the shares of BSE have given multibagger returns of about 107.7 percent.
About the company:
Established in 1875, BSE (Bombay Stock Exchange) Limited, Asia’s first & now the world’s fastest Stock Exchange with a speed of 6 microseconds, is engaged in providing a capital-raising platform and a platform for trading in equity, debt instruments, equity derivatives, currency derivatives, interest rate derivatives, mutual funds, and stock lending and borrowing. It also has a platform for trading in equities of small-and-medium enterprises (SME).
The equity shares of the company are listed on the National Stock Exchange of India Limited (NSE).
Written by Shivani Singh
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