In a strong upside move, BSE share price has hit the 20 per cent upper circuit today at Rs 504.8. This surge in the BSE shares may attract traders to look towards the stock and pump in money. Giving investors an insight on how to make money from this stock, Zee Business Managing Editor Anil Singhvi said that the company’s valuations are attractive and its asset value and debt-free status are the major reasons that should attract buyers. However, he advised traders specifically to remain away from the BSE Ltd stock as it is not a trading stock but a portfolio stock. Singhvi even advised portfolio investors not to buy the counter at 20 per cent upper side as it will definitely come down and then only they should buy it at around Rs 450 to Rs 475 levels.
The Market Guru listed three reasons for a portfolio investor to buy BSE shares, “There are three fundamental reasons that always attract an investor towards the BSE Ltd shares — attractive valuation, debt-free status and listing of NSE forcing the re-rating of the BSE.” Singhvi said that BSE Limited valuation is quite attractive as it is giving an investor the chance to buy this share at lower levels. Apart from this, the company is debt-free and has strong 20 per cent stake in CDSL that is also a positive sign for BSE fundamentals.
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On why investors should not buy BSE shares at current levels, Anil Singhvi said, “NSE IPO listing is round the corner and as per the latest rating of the NSE, its valuation is at Rs 40,000 crore. Now, comparing the valuation of BSE with the NSE, the former stands way ahead and hence, at the time of NSE listing, re-rating of the BSE would definitely happen and one can buy the counter as and when the listing is announced.”
See Zee Business tweet below:
#ZeeMaalamaalWeekly | आकर्षक डिविडेंड और मजबूत फंडामेंटल वाले इस बेहतरीन शेयर में करें निवेश, मिलेगा शानदार रिटर्न…
इन 3 वजहों से अनिल सिंघवी को भी है पसंद@AnilSinghvi_ @AshishZBiz pic.twitter.com/c59j1Xbl3K
— Zee Business (@ZeeBusiness) June 23, 2020
Singhvi said that at the time of NSE listing, BSE Ltd shares are expected to skyrocket giving investors huge amount of profit. So, this is not the right time to buy BSE Ltd shares, however investors should wait for some correction in the counter and some development in the NSE listing.