BSE Ltd’s shares have fall 3.7 per cent following a 21.4 per cent year-on-year decline in the company’s June quarter net profit to Rs 32.48 crore. The stock was at Rs 501.50 down 1.9 per cent from the previous close, while the benchmark Nifty was up 1.5 per cent at 11,056.80.

Total income declined 2.3 per cent year-on-year to Rs 162.11 crore in the quarter under review. BSE had suspended over 1,000 defaulting companies in the last quarter, which were billed but were bad accounts and had to be provisioned for. The exchange’s board has given ‘in-principle’ approval to explore the possibility of unlocking value in the distribution business of StAR MF, and appointment of a merchant banker for the same.

“…Our sum of the parts fair valuation of the stock ascribes value to its operations, including cash and margin money income at Rs 520 per share and its implied value from its subsidiary’s market price at holding company discount of Rs 120 per share. Target price implies an upside of 25 per cent to Rs 640,” brokerage from Motilal Oswal said. It has a buy rating on the stock. The exchange said it would maintain its capital allocation policy of returning 90–95 per cent standalone profit to shareholders. There are no plans of a share buyback in the near term.