BSE Ltd
BSE Ltd
Financial Services F&OBombay Stock Exchange (BSE Ltd) is an Indian Stock Exchange located at Dalal Street in Mumbai. The Co. facilitates a market for trading in equity, currencies, debt instruments, derivatives, and mutual funds. [1]
BSE Ltd has delivered exceptional profit growth of 68% CAGR over 5 years and 45% ROE last year, but trades at a steep PE of 67.6x and 25.2x book value, pricing in much of the upside. With zero analyst sell ratings and strong structural tailwinds in Indian capital markets, the stock merits holding but fresh entry at current valuations carries elevated risk.
Key Fundamentals
Technical Indicators
Key Insights
Strengths
5- Company is almost debt free.
- Company is expected to give good quarter
- Company has delivered good profit growth of 68.4% CAGR over last 5 years
- Company has a good return on equity (ROE) track record: 3 Years ROE 35.5%
- Company has been maintaining a healthy dividend payout of 22.0%
Weaknesses
1- Stock is trading at 23.7 times its book value
Growth Rate
AI Analysis — Bull vs Bear
anthropic claude-opus-4.6 8d agoBSE Ltd has delivered exceptional profit growth of 68% CAGR over 5 years and 45% ROE last year, but trades at a steep PE of 67.6x and 25.2x book value, pricing in much of the upside. With zero analyst sell ratings and strong structural tailwinds in Indian capital markets, the stock merits holding but fresh entry at current valuations carries elevated risk.
- Exceptional profit growth with compounded profit CAGR of 68% over 5 years and 124% over 3 years, demonstrating accelerating earnings momentum
- Outstanding ROE of 45% in the last year and 36% over 3 years, indicating highly efficient capital deployment for an exchange business
- Company is virtually debt-free, providing financial resilience and flexibility to invest in new product segments
- Revenue growth of 50% TTM and 74% CAGR over 3 years shows the core business is scaling rapidly with rising market participation
- Stock has delivered 179% CAGR over 3 years, reflecting strong institutional and retail conviction in the structural capital markets story
- Zero sell ratings from analysts — 57% buy and 43% hold across 14 analysts — indicates broad consensus on business quality
- Compounded sales growth of 23% over 10 years demonstrates long-term secular growth, not just a cyclical spike
- Healthy dividend payout ratio of 22% with 0.24% yield provides token income while the company reinvests for growth
- Trades at 67.6x PE which is extremely expensive even for a high-growth exchange business, leaving little margin of safety
- Price-to-book of 25.2x is excessively rich and implies the market is pricing in years of flawless execution
- Market cap of Rs 1,67,722 crore appears stretched relative to current earnings, requiring sustained 50%+ profit growth to justify
- TTM profit growth of 79% will be difficult to sustain as the base effect normalizes, risking a PE de-rating
- Dividend yield of just 0.24% offers negligible income cushion if capital appreciation stalls
- Stock CAGR of 53% in the last 1 year has already front-loaded much of the near-term upside, raising mean-reversion risk
- Capital markets revenues are inherently cyclical — a prolonged bear market or reduced retail participation could compress volumes and earnings sharply
- ROE has fluctuated from 20% over 10 years to 45% last year, suggesting current profitability may reflect peak-cycle conditions rather than a new normal
This is AI-generated analysis, not financial advice. Do your own due diligence.
AI News Digest
anthropic claude-opus-4.6 2d ago- New ED for Critical Operations Jun 16
BSE appointed Saurabh Shukla as Executive Director for Critical Operations (Vertical 1) for a 5-year term starting Sep 4, 2026, pending shareholder ratification.
- Leadership strengthened with two EDs Jun 2
BSE appointed Gopalan S. Raghavan as Executive Director and Geetha Gangadharan as Chief Regulatory Officer effective June 2026, with SEBI approval confirmed May 26.
- Rs 27.43 Cr block trade at Rs 4300 May 26
A block trade of ~63,793 shares was executed on NSE at Rs 4,300 per share totalling Rs 27.43 crores, signalling continued institutional interest.
- Multiple analyst/investor meetings scheduled Jun 20
BSE scheduled over 10 one-on-one meetings between May 28 and Jun 20 with firms including Millennium Capital, Bajaj MF, 12 Flags Global Fund, William Blair, Wasatch Global, and Choice Institutional Equities.
- Attended Citi & BofA conferences May 27
BSE participated in Bank of America's India Conference on Jun 2 and the Citi India Conference 2026 on Jun 4, both held in Mumbai.
TL;DR: BSE shows no visible headwinds in recent news flow. The company is actively strengthening its leadership bench with multiple SEBI-approved executive appointments and maintaining strong investor engagement through a packed schedule of institutional meetings and conference appearances. The Rs 27.43 Cr block trade at Rs 4,300/share reflects sustained institutional demand. The trend is stable-to-positive with governance upgrades and broad investor outreach suggesting management confidence in the growth outlook.
Quarterly Results
| Mar 2023 | Jun 2023 | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 | Dec 2024 | Mar 2025 | Jun 2025 | Sep 2025 | Dec 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 259 | 260 | 362 | 426 | 539 | 602 | 813 | 768 | 847 | 958 | 1,068 | 1,244 | 1,564 |
| Expenses | 132 | 146 | 173 | 280 | 388 | 319 | 358 | 533 | 362 | 332 | 388 | 512 | 523 |
| Operating Profit | 127 | 114 | 189 | 146 | 151 | 282 | 456 | 236 | 484 | 625 | 680 | 732 | 1,041 |
| OPM % | 49% | 44% | 52% | 34% | 28% | 47% | 56% | 31% | 57% | 65% | 64% | 59% | 67% |
| Other Income | 22 | 430 | 24 | 22 | 29 | 91 | 30 | 83 | 205 | 115 | 91 | 108 | 78 |
| Interest | 6 | 7 | 9 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | 21 | 21 | 23 | 25 | 26 | 24 | 29 | 30 | 30 | 27 | 32 | 45 | 55 |
| PBT | 122 | 516 | 182 | 143 | 154 | 349 | 457 | 288 | 660 | 713 | 739 | 795 | 1,063 |
| Tax % | 27% | 15% | 35% | 26% | 30% | 24% | 24% | 24% | 25% | 25% | 25% | 25% | 25% |
| Net Profit | 89 | 440 | 118 | 106 | 107 | 264 | 346 | 219 | 494 | 538 | 557 | 597 | 795 |
| EPS in Rs | 2.24 | 10.89 | 2.97 | 2.66 | 2.64 | 6.53 | 8.54 | 5.41 | 12.17 | 13.28 | 13.73 | 14.78 | 19.58 |
Profit & Loss
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 584 | 635 | 572 | 676 | 652 | 609 | 630 | 841 | 925 | 1,568 | 3,212 | 4,834 |
| Expenses | 293 | 392 | 381 | 401 | 434 | 482 | 429 | 489 | 609 | 857 | 1,336 | 1,755 |
| Operating Profit | 290 | 243 | 190 | 274 | 219 | 127 | 202 | 352 | 316 | 711 | 1,876 | 3,079 |
| OPM % | 50% | 38% | 33% | 41% | 34% | 21% | 32% | 42% | 34% | 45% | 58% | 64% |
| Other Income | -10 | 23 | 137 | 529 | 56 | 62 | 19 | 52 | 78 | 417 | 22 | 392 |
| Interest | 1 | 0 | 1 | 1 | 1 | 2 | 10 | 28 | 37 | 39 | 32 | 0 |
| Depreciation | 59 | 54 | 50 | 45 | 51 | 51 | 58 | 48 | 60 | 95 | 113 | 159 |
| PBT | 221 | 212 | 276 | 757 | 223 | 135 | 153 | 327 | 297 | 995 | 1,754 | 3,311 |
| Tax % | 20% | 17% | 4% | 7% | 10% | 11% | 7% | 25% | 31% | 22% | 25% | 25% |
| Net Profit | 177 | 177 | 265 | 702 | 199 | 121 | 142 | 245 | 206 | 772 | 1,322 | 2,487 |
| EPS in Rs | 1.66 | 1.38 | 4.57 | 14.22 | 4.27 | 3.02 | 3.58 | 6.27 | 5.43 | 19.17 | 32.65 | 61.31 |
| Div. Payout % | 33% | 61% | 68% | 28% | 78% | 63% | 65% | 72% | 74% | 26% | 23% | 16% |
Balance Sheet
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity Capital | 10 | 11 | 11 | 11 | 10 | 9 | 9 | 27 | 27 | 27 | 27 | 82 |
| Reserves | 2,450 | 2,512 | 2,652 | 3,070 | 2,918 | 2,416 | 2,498 | 2,627 | 2,674 | 3,275 | 4,397 | 6,591 |
| Borrowings | 4 | 1 | 3 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Liabilities | 1,730 | 1,717 | 2,517 | 1,918 | 1,575 | 2,051 | 2,120 | 3,531 | 3,293 | 6,148 | 5,918 | 6,773 |
| Total Liabilities | 4,195 | 4,240 | 5,183 | 4,998 | 4,504 | 4,476 | 4,627 | 6,185 | 5,994 | 9,450 | 10,342 | 13,446 |
| Fixed Assets | 251 | 241 | 249 | 207 | 204 | 190 | 184 | 161 | 252 | 285 | 300 | 686 |
| CWIP | 4 | 3 | 6 | 7 | 18 | 22 | 4 | 10 | 2 | 15 | 54 | 33 |
| Investments | 2,276 | 2,115 | 1,996 | 2,442 | 2,380 | 2,132 | 1,844 | 1,968 | 1,453 | 2,390 | 2,845 | 3,837 |
| Other Assets | 1,664 | 1,882 | 2,931 | 2,342 | 1,902 | 2,132 | 2,595 | 4,046 | 4,286 | 6,761 | 7,142 | 8,890 |
| Total Assets | 4,195 | 4,240 | 5,183 | 4,998 | 4,504 | 4,476 | 4,627 | 6,185 | 5,994 | 9,450 | 10,342 | 13,446 |
Cash Flow
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating | -153 | -44 | 817 | -239 | -313 | 397 | -68 | 1,442 | -137 | 2,643 | 414 | 3,104 |
| Investing | 371 | 164 | 95 | -236 | 347 | 470 | -190 | -980 | -111 | -871 | -758 | -2,740 |
| Financing | -45 | -120 | -85 | 108 | -352 | -618 | -55 | 9 | -186 | -149 | -206 | -304 |
| Net Cash Flow | 173 | 0 | 827 | -366 | -318 | 249 | -312 | 471 | -434 | 1,623 | -550 | 60 |
| Free Cash Flow | -225 | -106 | 759 | -301 | -375 | 359 | -106 | 1,410 | -280 | 2,513 | 262 | 2,589 |
| CFO/OP | -36 | 12 | 447 | -47 | -124 | 350 | -13 | 433 | -22 | 396 | 40 | 122 |
Ratios
| Mar 2015 | Mar 2016 | Mar 2017 | Mar 2018 | Mar 2019 | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 | Mar 2025 | Mar 2026 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debtor Days | 23 | 27 | 44 | 30 | 27 | 42 | 51 | 28 | 36 | 49 | 35 | 42 |
| Cash Conversion Cycle | 23 | 27 | 44 | 30 | 27 | 42 | 51 | 28 | 36 | 49 | 35 | 42 |
| Working Capital Days | -772 | -660 | -1,181 | -791 | -605 | -889 | -792 | -1,148 | -846 | -1,107 | -452 | -176 |
| ROCE % | 10% | 10% | 10% | 25% | 8% | 5% | 8% | 15% | 12% | 23% | 47% | 58% |
Documents
Frequently Asked Questions about BSE Ltd
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Company Information
Bombay Stock Exchange (BSE Ltd) is an Indian Stock Exchange located at Dalal Street in Mumbai. The Co. facilitates a market for trading in equity, currencies, debt instruments, derivatives, and mutual funds. [1]