Add these 2 financial services stocks, you got multibagger returns in 3 years: HDFC Securities
1. Limited BSE
Bombay Stock Exchange (BSE) is Asia’s oldest stock exchange with a rich heritage, now spanning three centuries in 133 years of existence. BSE is the first stock exchange in the country to gain permanent recognition (in 1956) from the Government of India under the Securities Contracts (Regulation) Act 1956. The central and prominent role of BSE in the development of the Indian capital market is widely recognized. . It has a market capitalization of Rs 8,064.11 crore.
BSE – Brokerage Comments
According to the broker, BSE’s market share on the cash/derivatives/currency segment stands at 7.9/1.7/18.6%, a slight improvement of +115/53/57 bps QoQ respectively. Cash revenue rebounded in the second quarter (strong Aug/Sept 22) after two quarters of decline. Proprietary/non-proprietary cash volume improved 12/19% QoQ. The mutual fund platform (StAR MF) was up 39% year-over-year, but the pace of growth has deteriorated. BSE should record revenue growth of +3.4% QoQ and an EBITDA margin of 32.3% (+67 bps QoQ).
“We have increased FY24E revenue/EBITDA estimates by 2.7/8.7% due to a recovery in trading volumes. We maintain our ADD rating with a target price of INR 740 , based on 25x core Jun-24 PAT + net cash + CDSL stake (15% off),” the brokerage said.
BSE Stock Outlook – CMP, 52-Week Low/High, Yields and Potential Upside
According to the given target price, the stock has the potential to increase by 25% from its current level, taking into account the given target price, i.e. Rs 740 per share.
The current market price (CMP) of the share on NSE stood at Rs 595.30 per share. The stock’s 52-week high is Rs 1,046.67 per share and the 52-week low is Rs 420.55 per share, respectively.
The stock has performed well in terms of yield over the past 5 years. However, it gave a negative return of 3.56% in the last 5 days and a negative return of 10.94% in the last month, respectively. Over the past 3 and 6 months, it has returned negative 9.63% and returned negative 34.04%, respectively. .
The stock gave a positive return of 27.87% over the year. It has given a multibagger yield of 247.32% over the past 3 years. Over the past 5 years, it has given a positive return of 82.72%.
2. Central Depository Services (India) Limited
Central Depository Services (India) Limited (CDSL) is one of India’s leading securities depositories in India. CDSL was promoted by BSE Ltd. jointly with leading banks such as State Bank of India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered Bank and Union Bank of India. CDSL was created with the aim of providing convenient, reliable and secure deposit services at an affordable cost to all market players. CDSL received the certificate of commencement of activity from SEBI in February 1999.
Other online services provided by CDSL include electronic voting, mobile applications and e-Locker National Academy Depository easi (electronic access to securities information and execution of secure transactions) (myeasi m-voting). It has a market capitalization of Rs 12,640.84 crore.
CDSL – Brokerage Comments
According to the brokerage company, CDSL added around 1.7 million BO accounts in September 22 and the market share stood at 71.5% (+ 530 basis points year-on-year) in September 22. The pace of BO account growth slowed to ~45% YoY from >60% last year. CDSL revenues should increase moderately over the quarter (+4.3% QoQ) thanks to better revenues from transactions, IPO/corporate action and electronic voting. The normalized margin (adjusted for the one-time bonus) will improve by 156 basis points to 63.0%.
“We maintain our ADD rating due to moderating growth in FY23/24E given a slowdown in market-related revenue (~60%). However, the recent regulatory requirement to dematerialize insurance policies could give a boost to revenue and profitability is trading at a P/E of 35x FY24E core PAT We have a TP of INR 1,260, based on 35x Jun-24E core PAT + net cash “said the brokerage.
CDSL – CMP Stock Outlook, 52-Week Low/High, Yields and Potential Upside
The title is likely to gain up to 5% from its current level given the given target price, ie Rs 1,260 per share.
The current market price (CMP) of the share stood at 1,209.65 rupees per share on NSE. The stock was listed on the stock exchange in June 2017. Its 52-week low is Rs 1,015 per share and 52-week high is Rs 1,734.40 per share, respectively.
In terms of return on investment, the stock has made good returns over the 5 years. However, in the last 5 days it has dropped by 4.67% and in the last month by 12.35%, respectively. Over the past 3 and 6 months, it has given a positive return of 10.22% and a negative return of 15.74%, respectively. The stock over the past year has returned negative 13.51%. Over the past 3 and 5 years, it has given a multibagger return of 485.65% and a multibagger return of 221.89%, respectively.
The stocks were selected from the brokerage report of HDFC Securities. Greynium Information Technologies, the author and the respective brokerage are not responsible for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before making any investment decision.