BSE - Investment Analysis

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

📊 Investment Rating: 4.3

BSE Ltd. (Bombay Stock Exchange) is a high-quality financial infrastructure play with exceptional capital efficiency and strong earnings momentum. Here's a full breakdown

🧠 Fundamental Analysis

Valuation

Stock P/E (72.7) vs Industry P/E (71.4) → Slightly overvalued

PEG Ratio (1.01) → Fair growth-adjusted valuation

Price to Book (≈22.8) → Expensive relative to asset base

Profitability

ROE (36.0%) and ROCE (46.6%) → Outstanding capital efficiency

EPS (₹32.6) → Solid earnings base

Qtr Profit Var (+364%) → Explosive YoY growth

Dividend Yield (0.24%) → Low, but consistent

Debt to Equity (0.00) → Virtually debt-free

📉 Technical & Trend Indicators

Current Price (₹2,487) is slightly below DMA 50 (₹2,519) and above DMA 200 (₹2,013) → Mild correction in a long-term uptrend

RSI (44.8) → Neutral zone, no strong signal

MACD (-41.0) → Bearish momentum

Volume slightly below average → Watch for breakout confirmation

🏁 Ideal Entry Price Zone

Based on valuation and technicals

₹2,300–₹2,450 is a favorable accumulation zone

This aligns with support near 50 DMA and historical demand zones

🧳 Exit Strategy / Holding Period

If you already hold the stock

Holding Period: Minimum 5–7 years to capture compounding and platform expansion

Exit Strategy

Partial exit if price crosses ₹3,000–₹3,200 and valuation becomes stretched

Hold if ROE/ROCE sustain and PEG remains near 1

Reassess if price breaks below ₹2,100 or if earnings growth stalls

🔮 Long-Term Outlook

BSE has delivered 206% 1-year return and 364% profit growth YoY

Analysts forecast targets of ₹2,707–₹3,200 over the next 12–18 months

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Forward PE suggests 6–8% upside from current levels

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🧪 Final Verdict

BSE Ltd. is a financially sound, high-growth platform with stellar ROE and ROCE. While valuation is rich, its earnings momentum and zero-debt profile make it a strong long-term candidate if accumulated near support zones.

Want to compare it with peers like MCX or CDSL for a broader exchange sector view?

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