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Shares of BSE Ltd fell as much as 9.17 per cent on Friday after it reported a net loss of Rs 1.94 crore in the fourth quarter ended 31 March, against a net profit of Rs 51.86 crore in the year-ago period.
At 01:15 pm, shares of BSE Ltd were trading at Rs 395.25 down 8.8 per cent from its previous close on NSE, while the benchmark Nifty fell 1 per cent to 9,005.45 points.
‘We expect revenue growth of 6.4/12.2 per cent in FY21/22E led by rebound in transaction revenue and increase in listing fees. We expect operating leverage with growth (EBITDA margin of 5.3/12.8% for FY21/22E). BSE has net cash of Rs 18bn (~91% of MCap) and a dividend yield of ~4%, which limits downside,’ analysts at HDFC securities said in a note. The brokerage has put ‘add’ rating to the stock.
‘BSE is trying to fight back and build the derivative volume through liquidity enhancement schemes, but it’s still early days. New initiatives like Insurance platform, currency trading in international exchange sounds promising and StAR MF platform is witnessing strong volume growth 60 per cent YoY in FY2019-20’ it added.
Company’s total income dropped 14.44 per cent to Rs 155.79 crore in the fourth quarter ended March 31, 2020, from Rs 182.08 crore in the same period of the previous fiscal. The board of directors of BSE has recommended a final dividend of Rs 17 per equity share,subject to the approval of shareholders in the ensuing annual general meeting.
