BSE - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 4.4

Here’s a comprehensive breakdown of BSE’s financial strength, valuation indicators, business profile, and guidance for long-term investors

📊 Core Financials & Profitability

PAT Surge: ₹493 Cr vs ₹217 Cr — a massive quarterly jump (+364%) reflecting either operational leverage or a one-time gain.

EPS: ₹32.6 — sustainable and growing, indicating consistent value creation.

ROE: 36.0% and ROCE: 46.6% — outstanding efficiency and capital productivity; standout metrics in the financial services sector.

Debt-to-Equity: 0.00 — debt-free, which is excellent for financial resilience and dividend potential.

Dividend Yield: 0.24% — modest payout, likely reinvesting profits to support growth.

💸 Valuation Indicators

P/E Ratio: 72.7 — trading at a premium, slightly above industry average (71.4); investors pricing in strong future growth or scarcity premium.

P/B Ratio: ~22.8 (₹2,487 ÷ ₹109) — extremely high, indicating stretched valuations relative to asset base.

PEG Ratio: 1.01 — just above fair valuation, aligns with high growth expectations.

Intrinsic Value: Valuation is rich — price momentum and earnings growth need to justify this premium.

🧠 Business Model & Strategic Edge

Sector: Capital markets infrastructure — operates stock exchanges, data services, and trading platforms.

Strengths

First-mover and legacy advantages.

Scale, regulatory linkages, and broad reach across financial participants.

Strong market sentiment, especially during bull runs.

Risks

Revenue tied to market volume and sentiment.

Intense competition from newer platforms or global players.

FII/DII positions modestly increasing — supportive trend but cautious.

📉 Technical Indicators

RSI: 44.8 — neutral zone, potential for breakout if volumes rise.

MACD: –41.0 — bearish momentum persists; watch for flattening or reversal.

Volume: Slightly below weekly average — suggests consolidation or investor wait-and-watch mode.

🎯 Suggested Entry Zone

₹2,300 – ₹2,450: Suitable for accumulation if price dips towards support levels.

Technical confirmation through MACD crossover or RSI uptick could boost timing.

📈 Long-Term Holding Guidance

Hold for 3–5 years if bullish on India’s financial deepening and exchange-based service growth.

Key upside levers

Retail investor boom.

Expansion of derivatives and ETFs.

Monetization of tech and data platforms.

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