Bombay Stock Exchange (BSE) – Understanding the business and Current Valuations
This document is just for training purposes. It is not an investment advise. If you want to invest in this stock, please consult with your financial advisors before making any investment decision.
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BSE – Brief History 1875-2011
2012-2015
•
Established in 1875
•
BSE SME Platform
•
Corporatized
•
Currency Derivatives
•
Mutual Fund Platform Launched (“StAR MF”)
•
Interest rate derivatives
•
Debt segment platform
2016-2017 •
Trading in Sovereign gold bonds
•
BSE Bond E-book
•
India Intl. Exchange
•
Became India’s first listed Exchange
2018-2019 •
Commodity derivatives
•
JV with PTC and ICICI bank to set up a power Exch.
•
Star MF Mobile application launched
2020 •
BSE Ebix Insurance broking services
•
Partnered with LIC MF for e-KYC services
•
Launched commodity options in GoldM and SilverKG
Source: BSE Investor presentation
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BSE – Current position globally Market Capitalization
Electronic book trades
# Listed Cos.
2.11 Trillion
40.3 Million
5,594
Currency option traded volume 32.58 Million
9th highest globally
8th largest globally
Highest globally
2nd Largest globally
Currency Futures traded volume 25.79 Million 4th Largest globally Source: BSE Investor presentation
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BSE – FY 2020 Revenues by segment Revenues (Rs. Crores)
Revenues Share by segment
FY ending March 2020
FY ending March 2020
451
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BSE – Revenues and EBITDA comparison (half year ending June 20XX) Revenues (Rs. Crores) Half year Sep 2021 and Sep 2020
228.6
221.0
Revenues and EBITDA improved vs H1 2020 Email: Support@skillfinlearning.com
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BSE – Valuation comparison vs peers Current Market Cap (INR Crores)
2,706 Crores
Current P/E Multiple (BSE)
22x
Current P/E Multiple (Peers) MCX
35.5x
IEX
33.9x
CAMS
54.8x
BSE Trades at a discount to peers
Current Market Cap as on 22 Jan 2021
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BSE – Current Valuation Current Market Cap Debt and Debt equivalents Cash and Bank balance Short term investments
2,706 Crores NIL 1,609 Crores 1,210 Crores
2819 Crores
Value of cash, bank and short-term investment is less than the current market cap of the company, meaning it is trading at a significant discount. Current Market Cap as on 22 Jan 2021
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BSE – Historical share price
• Current stock (Rs. 600) price is around 45% lower than historical highs (Rs. 1,100)
Current Market Cap as on 22 Jan 2021
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Summary
• BSE is the 9th largest stock exchange globally by market cap. • Recently, it has made investments for future growth (example Insurance brokerage, Power trading, Mutual funds etc.) • Its revenues are growing, and margins are increasing • It trades at a discount to peers • It has significant cash and investment in its balance sheet. Current market cap is lower than the investments and cash in its books. • Share price is trading at 45% discount vs historical highs.
This document is just for training purposes. It is not an investment advise. If you want to invest in this stock, please consult with your financial advisors before making any investment decision. Current Market Cap as on 22 Jan 2021
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BSE – Balance sheet as on 31 March 2020
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