Motilal Oswal: BSE Delivers Stable Commentary Post Q1 Results
Motilal Oswal: BSE Delivers Stable Commentary Post Q1 Results
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Motilal Oswal Report
BSE Ltd.’s Q1 FY21 reported revenue of approximately Rs 1.0 billion was below our estimate, weighed by lower listing fees and transaction charges.
Listing fees were impacted due to Covid-19 (lower listings) and BSE suspending over 1,000 default companies in Q4 FY20 (which were billed and later provisioned for), while the margin was largely in-line.
Management’s decision to explore options to unlock value from its Star Mutual Fund segment is encouraging. Cross-subsidisation by NSE has limited monetisation opportunities for BSE in the Star MF, International Exchange, and Commodity Derivatives segments in the near term.
While the announced additional income streams may be small currently, some of them have the potential to present meaningful opportunity over the long term.
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