NSE will ensure that BSE exists so that it can remain listed on BSE.
Any reason why BSE cannot be listed on BSE. Globally, I have observed that NYSE trades at NYSE and ASX trades at ASX.
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looking at the qtr presentation. this hasnt happened (yet).
also, noticed pabrai has picked up a stake.
So Any Comments on the Quarterly Results ?
Usually The Presentations show the ‘Rosy’ pictures. The real ‘Thing’ is in the results.
Regards,
Vikas
problem is not the Q1 result. Problem is how they are destroying their capital by doing mindless buybacks.
Good see Pabrai Investment Funds to be 4th largest share holders with 2.43%.
Currently, evaluating arbitrage considering the current price & the buyback.
Holding since IPO, with largest allocation in the portfolio.
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Are the proceeds from the stake sale in INX to ICICI not included in the results?
StAR MF revenue for the quarter is 11.9 Cr. More than 25K IFAs on the platform; they now have a mobile app (for onboarding clients and to transact, I presume).
Guys, for the past few quarters (including this Jun’19 quarter), BSE Ltd is making losses at operating level mainly due to declining topline - We should calculate operating profit excluding Income From Investments and Deposits i.e., Other Operating Income (Investment Income).
This Other Operating Income should be considered as just ‘Other Income’ and not as Other Operating Income since this Income is mostly from Debt Schemes of Mutual Funds/ G-Sec/ Debentures etc. BSE Ltd is hiding this fact by conveniently including this Income (Investment Income) at operating level.
So, I guess the market is valuing BSE Ltd based on the Investments it holds as the actual business is loss making due to high expenses.
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What a coincidence. Yesterday only I mentioned his name with his mantra - Head I win, Tails I dont lose much.
By the way, where to find such shareholdings. I know only 2 sites. the trendlyne and the ratestar.in ( better version of screener.in)
Please give inputs.
True that!
and the sad part is whatever that cash is yielding something 7% , they are using some portion of it to do buyback at mindless valuations, Which is further degrading the value of the company.
When you value this company as a bond the moment they return some portion of principal in the form of buyback the value of bond should go down respectively. Sad part is unlike bonds principal here is getting returned in mindless way.
The point you raise is (at least partly) addressed in an illuminating interaction between @hardikca and @dd1474 earlier (Nov. 2018). Would request you to go through that part.
Float is an integral part of a few businesses - insurance cos. and exchanges are good examples. I doubt if BSE management can “hide” this fact - even if it wants to !!!
Thanks, I will go through that interaction. I accept your point but what I m trying to say is that the income from this float shouldn’t be included in operating income. I mentioned the word “hide” because not many people will know about this - They may think that BSE is making profit at operating level.
So, when analysing BSE Ltd, this Investment Income should be looked at separately.
HDFC Securities Analysis of Q1FY20 result
BSE has been investing in future growth drivers like INX, Insurance distribution, SME and StAR MF. Out of these only StAR MF has started generating revenue while the rest would need more time.
Incremental revenue from StAR MF, volume revival and higher listing fee should lead to revenue growth of 11.1/11.8% in FY20/21E. We expect some operating leverage to play out with growth (EBITDA margin of 11.4/15.8% for FY20/21E).
The stock is down 23% in the last 3M due to stress in the tradition revenue stream, continued investments despite slowdown and buyback tax. Value is emerging with net cash of Rs 20bn (~80% of MCap) and a dividend yield of ~7%.
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Hi, any other way to confirm Pabrai Fund investments in BSE Ltd. I am not able to find genuine source f this at least on nse india.
Please can someone confirm this.
Thanks in advance
NSE can fight with BSE ( giving it for free) until BSE runs out of cash.
@AmitContrarian - from this thread it seems like you thought it was fair value at around 650? but, you seem to be negative at this price? could i ask whats your position in this stock? you don’t have to tell of-course.
btw, i would correct what you said
“NSE is already fighting with BSE ( giving it for free and paying for flow) …”
the loss at inx is about 30+ crs annually atm.
how many years do you expect it to take for it to run out of cash in?
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Please study the investor presentation of the BSE ltd after quarterly result. The same should be available in their site.
Actually I studied the shareholding pattern on nseindia and also other websites like valueresearchonline.com.
But none of then are showing Pabrai funds as shareholder.
That’s why I asked.
https://www.nseindia.com/corporates/corporateHome.html?id=spatterns&radio_btn=company¶m=BSE
Hope this link works. Check table 3.
https://www.valueresearchonline.com/stocks/shareholding_pattern.asp?code=23649
Just wanted to be sure before investing in BSE.
Reagrds
Vikas
You can check trendlyne too for shareholding patterns. They have investor wise portfolio information as well. Even they haven’t updated pabrai’s investment in bse. I couldn’t find any bulk deal data on nse as well in this regard. His name doesnt reflect in bse’s q1 shareholding pattern as well. Only in the investor presentation. Will check annual report.
After each buyback you have revise down the target as its not done at right price, Its better to buy gov bond yielding 7.5% rather than buying back stocks at prices they did.
Because operationally its a loss making company if you take out other income, i tried to value it as a bond. after each buyback the principal has been paid back so the value to company should go down that much.
I think there are much better businesses which promise good growth over time Vs BSE . Personally i consider it as cigarbutt investing.
I know what i said many won’t agree and others can have difference of opinion which is fine.
I might be wrong but that’s how i see it.
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