GEOJIT RESEARCH
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BSE Limited
Sensex : 27,309
Nifty
: 8,435
Issue Details
Date of Opening
Date of Closing
1.54
5.37
Price Band
Rs805 806
Face Value
Rs2
Bid Lot
Multiples of 18 shares
Listing
NSE
Motilal Oswal, SBI Capital
& SMC Capitals
Lead Managers
Registrars
Karvy Computershare
1,243.4
Net Issue
1,243.4
Shareholding (%)
Pre Issue
Promoters
Post Issue
Others
100
100
Total
100
Issue structure
100
Size Rs cr
(at upper band)
Allocation %
Retail
35
435.2
Non Institutional
15
186.5
QIB
50
621.7
Total
100
1,243.4
Key Risks...
Volatility in the Indian markets may hamper demand for BSEs services.
Electronic trading platform may be vulnerable to security risks and cyber
attacks.
Business environment is exposed to the risk of rapid technological change.
Rs cr
FY15
FY16
H1FY17
Revenue
584
616
353
EBITDA
264
258
163
Adj. PAT
180
169
126
7.3
6.9
5.0
33.6
31.5
23.4
P/E (x)
24.0
25.6
34.4
ROE (%)
Peer Valuations
Company
BSE
MCX
Singapore Exchange*
Revenue FY16
(Rs cr)
616
235
3,867
MCap
(Rs cr)
FY16
PE (x)
FY16
ROE%
4,327
6,170
38,545
25.6
56.5
23.1
6.9
9.1
35.5
Source: Geojit Research, Bloomberg; Note: Valuations of BSE are based on upper end of the price band
*Revenue, MCap and EPS of Singapore exchange has been converted from SGD to INR
EPS
FY15
33.6
24.6
15.4
FY16
31.5
21.4
15.7
FY15
(7.9)
(18.0)
6.2
FY16
(6.3)
(13)
2
Company Description
Established in 1875, BSE is the oldest stock exchange in Asia. It regulates listed issuers and provides a market for listing and
trading in various types of securities as may be allowed by SEBI from time to time. BSE is the world's largest exchange by
number of listed companies (5,868). At the end of October 2016, it was India's largest and the world's 10th largest exchange
by market capitalization, with USD1.7trillion in total market capitalization of listed companies. As of September 30, 2016,
BSE had 1,446 unique members across all segments. In FY16, BSE accepted an average of ~285mn orders and 1.55mn trades
in equity shares per trading day, placing it as the 12th most active exchange in the world in terms of electronic book trades in
equity shares. BSE operates in three primary lines of business, namely: (1) The listing business, which consists of the
primary market related to the issuance of new securities, (2) The market business, which consists of (a) the secondary
market, which relates to the purchase and sales of previously-issued securities, (b) BSE StAR MF ("BSE StAR"), its online
platform for the placement of orders and redemptions of units in mutual funds, (c) NDS-RST, its platform for the reporting
of over-the-counter corporate bond trading, (d) membership, which includes membership in the exchange, membership in its
clearing corporation ICCL & depository participants in its depository CDSL and (e) post-trade services, namely the clearing
corporation & depository and (3) The data business, which consists of the sale and licensing of information products.
Revenue Mix
Rs.Cr
Securities
Services
Services to
Corporates
Data
Dissemination
Fees
Income from
Investments
& Deposits
Revenue
FY15
FY16
H1FY17
187.2
233.7
243.0
149.7
59.1
105.4
161.1
80.2
20.4
22.1
22.4
12.3
218.3
222.6
189.7
111.2
485
584
616
353
turnover-related revenue such as transaction charges, auction charges and depository charges, but also non-market turnoverrelated revenue including investment income, training income, software income and rental income.
Financials (Consolidated)
Profit & Loss Account
Balance Sheet
FY14A
FY15A
FY16A
H1FY17A
Revenue
485
584
616
353
% change
(4.8)
20.3
5.6
EBITDA
243
264
258
163
% change
(9.3)
8.9
2.2
32
59
62
25
210
206
197
138
45
41
42
30
255
246
238
168
Depreciation
EBIT
Interest cost
Other income
PBT
% change
Tax
Tax rate (%)
(9.1)
(3.5)
(3.1)
34
44
32
22
13.3%
13.3%
17.8%
13.6%
Reported PAT
135
130
123
105
Adj.
(61)
(51)
(47)
(21)
Adjusted PAT
196
180
169
126
% change
(9.8)
(7.9)
(6.3)
10.4
10.7
10.7
10.7
36.5
33.6
31.5
23.4
% change
(9.8)
(7.9)
(6.3)
DPS (Rs.)
7.9
10.2
15.2
1.7
Cash Flow
Y.E March (Rs cr.)
FY14A
FY15A
FY16A
H1FY17A
193
195
192
147
Depreciation
34
58
64
26
210
(176)
(82)
129
(210)
(183)
(149)
(91)
Tax paid
(55)
(48)
(73)
C.F.O
173
(153)
(49)
214
Capital exp.
(45)
(73)
(62)
(30)
(621)
(92)
193
(86)
Other invest.CF
591
533
34
(130)
C.F - investing
(75)
369
165
(246)
Issue of equity
(1)
Issue/repay debt
(2)
(1)
(61)
(61)
(124)
(68)
Other finance.CF
(212)
12
C.F - Financing
(271)
(45)
(122)
(68)
Chg. in cash
(173)
170
(6)
(100)
Closing cash
1,469
1,452
1,610
1,692
Others
Change in inv.
Dividends paid
FY14A
1,469
34
70
2,186
105
34
85
(5)
FY15A
1,452
36
84
2,276
166
4
85
4
FY16A
1,610
48
104
2,062
162
3
85
11
H1FY17A
1,692
64
168
2,164
158
9
85
11
82
88
122
101
4,061
1,436
1
4,195
1,356
4
4,207
1,285
2
4,452
1,407
-
60
65
72
72
10
2,360
2,371
188
11
2,450
2,461
199
11
2,439
2,449
222
11
2,542
2,553
228
111
176
192
4,061
441.9
4,195
458.7
4,207
456.5
4,452
475.8
Key Ratios
Pre-tax profit.
Changes in W.C
Y.E March
Growth (%)
Net Sales
EBITDA
Net Profit
Profitabl. & Return
EBITDA Margin (%)
EBIT Margin (%)
PAT Margin (%)
ROE
ROCE
W.C. & Liquidity
Receivables (days)
Inventory (days)
Payables (days)
Current ratio (x)
Quick ratio (x)
Turnover & Levg.
Gross asset turnover (x)
Adj. debt/equity (x)
Valuation ratios
EV/ Sales (x)
EV/ EBITDA (x)
P/E (x)
P/BV (x)
FY14A
FY15A
FY16A
(4.8)
(9.3)
(9.8)
20.3
8.9
(7.9)
5.6
(2.2)
(6.3)
50.0
43.4
40.4
8.4
10.1
45.3
35.2
30.9
7.3
9.2
41.9
31.9
27.4
6.9
8.5
25.9
70.7
1.1
1.1
22.5
66.3
1.2
1.2
28.4
71.1
1.4
1.4
4.5
0.0
3.5
0.0
3.8
0.1
6.3
12.6
22.1
1.8
5.5
12.1
24.0
1.8
5.1
12.1
25.6
1.8
Geojit BNP Paribas Financial Services Limited has outsourced the preparation of this research report to DION Global Solutions Limited whose relevant
disclosures are available hereunder. However, Geojit BNP Paribas's research desk have reviewed this report for any untrue statement of material fact or any
false or misleading information.
Dion/its associates have no financial interest or any other material conflict in relation to the subject company (ies) covered herein at
the time of publication of this report.
(ii)
It/its associates have no actual / beneficial ownership of 1% or more securities of the subject company (ies) covered herein at the end
of the month immediately preceding the date of publication of this report.
He, his associates and his relatives have no financial interest in the subject company (ies) covered herein, and they have no other
material conflict in the subject company at the time of publication of this report.
(ii)
He, his associates and his relatives have no actual/beneficial ownership of 1% or more securities of the subject company (ies) covered
herein at the end of the month immediately preceding the date of publication of this repo
ROHIT JOSHI
Geojit BNP Paribas, 34/659-P, Civil Lane Road, Padivattom, Kochi 682024. Research Entity SEBI Registration Number: INH200000345
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