BSE Higher On Growth Yet Cheaper Than MCX

The BSE Ltd. is not only the cheaper bet among two of the leading listed exchanges in India, but has outperformed the Multi Commodity Exchange in trading revenues.

Asia’s oldest stock exchange is trading at 19.9 times its earnings for the next financial year. That’s a twenty-one percent discount to MCX.

The core trading revenue for BSE rose at an annualised rate of 16.6 percent in the last five years. In comparison, it declined 13.1 percent for MCX.

The BSE has been innovating and investing in technology and remains a valuable franchise, HDFC Securities said in a report. Higher transaction revenue, annual listing fees and book building services helped the exchange, the brokerage said.

The brokerage has a target price of Rs 1,206 on the stock, an upside of 30 percent.