⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
BSE - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 4.1
| Stock Code | BSE | Market Cap | 1,16,520 Cr. | Current Price | 2,861 ₹ | High / Low | 3,030 ₹ |
| Stock P/E | 69.9 | Book Value | 108 ₹ | Dividend Yield | 0.21 % | ROCE | 47.5 % |
| ROE | 35.8 % | Face Value | 2.00 ₹ | DMA 50 | 2,695 ₹ | DMA 200 | 2,424 ₹ |
| Chg in FII Hold | 1.20 % | Chg in DII Hold | 3.83 % | PAT Qtr | 514 Cr. | PAT Prev Qtr | 456 Cr. |
| RSI | 48.8 | MACD | 5.16 | Volume | 70,53,162 | Avg Vol 1Wk | 69,48,691 |
| Low price | 1,227 ₹ | High price | 3,030 ₹ | PEG Ratio | 0.85 | Debt to equity | 0.00 |
| 52w Index | 90.6 % | Qtr Profit Var | 82.6 % | EPS | 40.4 ₹ | Industry PE | 61.2 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT rose to 514 Cr. from 456 Cr., showing strong growth. EPS stands at 40.4 ₹.
- Margins: ROCE at 47.5% and ROE at 35.8% highlight excellent efficiency and profitability.
- Debt: Debt-to-equity ratio of 0.00 reflects a debt-free balance sheet, enhancing financial resilience.
- Cash Flow: Strong profitability supports robust operational cash generation.
💹 Valuation Indicators
- P/E Ratio: 69.9, higher than industry average of 61.2, suggesting mild overvaluation.
- P/B Ratio: Current price (2861 ₹) vs. book value (108 ₹) shows steep premium.
- PEG Ratio: 0.85, indicating growth prospects are reasonably aligned with valuation.
- Intrinsic Value: Current market price appears slightly stretched but supported by strong fundamentals.
🏢 Business Model & Competitive Advantage
- Operates as a leading stock exchange with diversified revenue streams from trading, clearing, and listing services.
- Strong brand recognition and market dominance provide competitive edge.
- Debt-free structure enhances long-term sustainability.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range lies between 2,600–2,750 ₹, given slight overvaluation.
- Long-Term Holding: Suitable for investors seeking exposure to capital markets growth, with potential for compounding returns.
✅ Positive
- Quarterly PAT growth of 82.6% shows strong earnings momentum.
- ROCE at 47.5% and ROE at 35.8% highlight excellent efficiency.
- Debt-free balance sheet ensures financial stability.
⚠️ Limitation
- P/E ratio (69.9) above industry average, indicating premium valuation.
- P/B ratio shows steep premium compared to book value.
- Dividend yield at 0.21% is unattractive for income-focused investors.
📉 Company Negative News
- High valuation multiples may limit near-term upside.
- Stock trading near 52-week high could face profit booking pressure.
📈 Company Positive News
- FII holding increased by 1.20% and DII holding by 3.83%, reflecting strong institutional confidence.
- MACD positive (5.16), indicating bullish short-term momentum.
🏭 Industry
- Capital markets sector benefits from rising retail participation and economic growth.
- Industry P/E at 61.2 highlights moderate valuation compared to BSE’s premium.
🔎 Conclusion
BSE Ltd. (BSE) demonstrates strong fundamentals with excellent ROCE, ROE, and consistent profit growth, supported by a debt-free balance sheet. While valuations are slightly stretched compared to industry peers, institutional confidence and robust earnings momentum make it attractive for long-term investors. Accumulation closer to 2,600–2,750 ₹ offers better risk-reward balance, with long-term holding benefiting from capital market expansion and BSE’s dominant position.