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Target: ₹2,725
CMP: ₹2,469.35
BSE reported a PAT of ₹106 crore in Q3-FY24 (23 per cent below our estimate), up 124 per cent y-o-y but down 10 per cent q-o-q, mainly owing to its contribution of ₹91.70 crore to SGF for the currency derivatives segment. Operating revenue grew 18 per cent q-o-q and 82 per cent y-o-y to ₹370 crore, broadly in line with our estimate.
- Also read:Broker’s call: Sundaram Finance
After the relaunch, derivative contracts, (Sensex and Bankex) are witnessing significant traction from market participants. BSE has increased transaction charges on Sensex options (only on near expiry), with effect from 1st Nov’23. Thus, the derivative segment would see strong revenue growth.
BSE is developing a co-location facility - a strategic investment in the short term that will benefit in the long term. 2024 will be a transformational year as BSE is committed to growing in new areas such as expansion of data centers, new MF platform, improving clearing & settlement services, and enhancing index and data services.
In order to further reduce clearing and settlement costs, the exchange is trying to review the contract terms with NSCL and increase its institutional presence.
We have upgraded our EPS estimates by 7/6 per cent for FY25/FY26 to factor in the higher volume trajectory for its equity derivatives segment. .
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