The BSE Ltd board will be meeting on Sunday, March 30, to discuss a proposal on bonus shares. If declared, it would be the second bonus issue by the stock exchange since 2022.
The stock exchange, which is a consistent dividend payer, had announced bonus in the ratio of 2:1 in March 2022. It means if BSE shareholders already had one stock, they received two additional new shares and there total holding of shares jumped to three shares against one share earlier.
BSE also announced share buybacks twice -- 2019 and 2023.
As far as dividends are concerned, BSE paid a total dividend of Rs 15 per share in FY24, Rs 12 per share in FY23, Rs 13.50 per share in FY22, Rs 21 in FY21 and Rs 17 in FY20. Its dividend yield though declined over past few years, as per data compiled with AceEquity.
MOFSL has a 'Buy' rating and a target price of Rs 6,900 on BSE. It said despite a sharp correction, stocks including BSE are still up in the past six months, indicating a strong re-rating. On Thursday, the scrip was trading 4.96 per cent higher at Rs 4,696.65.
BSE serves as a securities exchange, facilitating the trading of equities, derivatives, debt, and other financial instruments. The exchange generates revenue primarily through transaction fees, listing fees, and the provision of technology solutions to market participants.
Ventura recently initiated coverage on BSE with a 'Buy' rating, setting a target price of Rs 5,422 for the next 24 months. The broking firm noted that BSE, trading at 32.1 times the estimated FY27 EPS, is attractively valued in relation to its growth potential. Additionally, Ventura highlighted that its financial projections are notably conservative, taking into account the recent sharp declines in market volumes.
Therefore, it said any reversion to the mean is expected to lead to significant operating leverage. "Achieving market share parity with NSE would present substantial upside potential beyond our estimates. Key risks include: 1) Regulatory changes impacting derivatives volumes, and 2) Competition from NSE and MSEI," the report stated," it said.