Add BSE, target price Rs 710: HDFC Securities

HDFC Securities has add call on BSE with a target price of Rs 710. The current market price of BSE Ltd. is Rs 589.05.
BSE Ltd., incorporated in the year 2005, is a Small Cap company (having a market cap of Rs 8141.32 Crore) operating in Financial Services sector.

BSE Ltd. key Products/Revenue Segments include Fees & Other Charges for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 197.70 Crore, down -15.30 % from last quarter Total Income of Rs 233.40 Crore and up 6.45 % from last year same quarter Total Income of Rs 185.72 Crore. Company reported net profit after tax of Rs 29.07 Crore in latest quarter.


Investment Rationale
The brokerage expects revenue growth of 4.7/12.6/12% and EBITDA margins of 30.1/32.4/33.3% in FY23/24/25E respectively. It estimates StAR MF revenues of INR 0.75/0.97bn in FY23/24E. Core profits after taxes for FY23/24/25E stand at INR 1.58/1.97/2.33bn.

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 30-Jun-2022, while FIIs owned 11.02 per cent, DIIs 1.02 per cent.