BSE getting stocked!

BSE Ltd is up in the green today; from its close of Rs.4475, it opened 4% higher at Rs.4650 and went on to an intraday high at Rs.4735, up 6%. Its 52-week high and low stands at Rs.6133.40 and Rs.2115 respectively.

This surge is primarily attributed to the company's announcement that its board of directors will meet on March 30, 2025, to consider and approve a proposal for issuing bonus shares, pending requisite approval.

This marks the second time BSE Ltd. is contemplating a bonus issue, the previous one being in March 2022, when the company issued bonus shares in a 2:1 ratio.

Mr.SP Tulsian had given a buy call yesterday at Rs.4652 and has given a target of Rs.4932 in the next 3 months.

BSE has posted robust Q3FY25 numbers, with total income rising to Rs. 835 cr, against Rs.819 cr QoQ and Rs.431 cr YoY. PBT (before contribution to Core Settlement Guarantee Fund) grew to Rs. 467 cr, against Rs.433 cr QoQ and Rs.219 cr YoY. BSE’s contribution to Core Settlement Guarantee Fund (CSGF) rose to Rs. 199 cr, from Rs. 19 lakh QoQ and Rs. 92 cr YoY, as new Core SGF guidelines have been implemented with effect from 1.12.24. PAT for Q3FY25 stood at Rs.220 cr against Rs.347 cr QoQ and Rs.108 cr on YoY. EPS of Rs. 16 for Q3 and Rs.60.55 for 9MFY25, against Rs. 29.91 for FY24, against Rs. 20.05 for FY 24, is due to show 30% growth in PAT for the next 2 years, till FY 27.

Based on these numbers, Mr.Tulsian said that this growth is bound to get captured in the share price with an expected CAGR of 35% for the next 2 years, with an EPS of over Rs. 100+ for FY26, giving a PE of sub 44x ,net off cash, while such stocks rule at a PE of 55+x. Equity of the company is seen small at Rs. 27 cr (FV of Rs 2) with NW of Rs. 3,930 cr, as at 31-12-24, giving BV of Rs. 290 per share, which is entirely held as Investment or Cash.