From saviour to struggler? This stock faces bear market test
Subscribe to enjoy similar stories. The December quarter was brutal for investors, with the market slumping 7.3% and portfolios deep in the red. Yet, one investor found an unlikely lifeline: BSE.
The market barometer helped ace investor Mukul Aggarwal weather the storm, providing a rare bright spot amid the downturn. Trendlyne data shows that the BSE stock, comprising nearly 14% of Aggarwal’s portfolio, surged 22% in Q3FY25, driving his net worth higher. However, this former lifeline now faces headwinds.
A broader market correction is weighing on BSE’s stock price, dragging it down 8% in the past month, though it remains up 1% year-to-date. Read this | Bullish or bearish? Mint survey gauges market mood amid volatility Investors, however, may find some comfort in the company’s record third-quarter performance. The bourse's revenue hit an all-time high and profit doubled year-over-year, largely driven by the success of BSE Star MF—its web-based mutual fund distribution platform, which saw a 92% revenue jump.
While BSE's yearly performance looks strong, sequential data reveals a different story. Revenue growth slowed to just 3.6% quarter-on-quarter—the weakest in six quarters—hurt by a 22% drop in cash volume and lower treasury income from clearing funds. Chandan Taparia, head of equity derivatives and technicals at Motilal Oswal Financial Services, attributes this to profit booking in mid- and small-cap stocks and a shift in trading interest to outperforming assets like gold.
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