BackShares of BSE Ltd fall 4% after weak Q1 performance
The exchange's board has given in-principle approval to explore the possibility of unlocking value in distribution business of StAR MF
PremiumMUMBAI: Shares of BSE Ltd fell 3.7% on Tuesday following a 21.4% year-on-year decline in the company's June quarter net profit to ₹32.48 crore.
At 0220 pm, the stock was at ₹501.50 down 1.9% from previous close, while the benchmark Nifty was up 1.5% at 11,056.80.
Total income declined 2.3% year-on-year to ₹162.11 crore in the quarter under review. BSE had suspended over 1,000 defaulting companies in the last quarter, which were billed but were bad accounts and had to be provisioned for.
The exchange's board has given 'in-principle' approval to explore the possibility of unlocking value in the distribution business of StAR MF, and appointment of a merchant banker for the same.
"...Our sum of the parts fair valuation of the stock ascribes value to its operations, including cash and margin money income at ₹520 per share and its implied value from its subsidiary’s market price at holding company discount of ₹120 per share. Target price implies a upside of 25% to ₹640," brokerage from Motilal Oswal said. It has a buy rating on the stock.
The exchange said it would maintain its capital allocation policy of returning 90–95% standalone profit to shareholders. There are no plans of a share buyback in the near term.
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