Check Before You Invest : BSE Ltd

Q: Which industry/sub-sector does BSE Ltd belong to?

BSE Ltd belongs to the BFSI sector, operating specifically within the Finance - Others segment.

Q: Is BSE Ltd a good quality company?

BSE Ltd is a average quality company, based on a somewhat consistent multi-year financial track record. This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q: Is BSE Ltd undervalued or overvalued?

BSE Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 63.83, Historic Median: 47.17. Price to Book, Current: 23.88, Historic Median: 11.27. Price to Sales, Current: 32.97, Historic Median: 28.37. EV to EBITDA, Current: 45.45, Historic Median: 44.04

Q: Is BSE Ltd a good buy now?

BSE Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Q: Revenue growth of BSE Ltd?

BSE Ltd revenue growth is 104.8% for FY-2025, which is above its 5-year CAGR of 39.45%, indicating faster growth.

Q: Gross Profit margin of BSE Ltd?

BSE Ltd Gross profit margin which is the profit after deduction of direct costs, is 55.4% for FY-2025, which is above its 5-year median of 37%, indicating increasing margins.

Q: Operating Profit Margin of BSE Ltd?

BSE Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 55.53% for FY-2025, which is above its 5-year median of 37.67% indicating increasing margins.

Q: Net Profit Margin of BSE Ltd?

BSE Ltd Net Profit Margin is 41% for FY-2025, is above its 5-year median of 29.13%, indicating increasing margins. Profitability Metrics. Gross Profit Margin (%), Current: 55.4, Historic Median: 37. Operating Profit Margin (%), Current: 55.53, Historic Median: 37.67. Net Profit Margin (%), Current: 41, Historic Median: 29.13

Q: Return on Asset of BSE Ltd?

BSE Ltd Return on Asset is 13.4%, which is above its 5-year historical median of 4.6%, indicating improved asset utilization efficiency.

Q: Return on capital employed (ROCE) of BSE Ltd?

BSE Ltd Return on capital employed is 36.3% for FY-2025, which is above its 5-year historical median of 11.2%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Snapshot

Q.1 Which industry/sub-sector does BSE Ltd belong to?

BSE Ltd belongs to the BFSI sector, operating specifically within the Finance - Others segment.

Q.2 Is BSE Ltd a good quality company?

BSE Ltd is a average quality company, based on a somewhat consistent multi-year financial track record.

This assessment is based on company’s performance on Revenue growth, ROCE, Equity and Assets, key margin ratios, cash conversion cycle, and debt to cash flow from operations and how it compares with its long term averages.

Q.3 Is BSE Ltd undervalued or overvalued?

BSE Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	63.83	47.17
Price to Book	23.88	11.27
Price to Sales	32.97	28.37
EV to EBITDA	45.45	44.04

Q.4 Is BSE Ltd a good buy now?

BSE Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NIM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth and Cost-to-Income ratio.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in revenue and profit margins?

Q.1 Revenue growth of BSE Ltd?

BSE Ltd revenue growth is 104.8% for FY-2025, which is above its 5-year CAGR of 39.45%, indicating faster growth.

Q.2 Gross Profit margin of BSE Ltd?

BSE Ltd Gross profit margin which is the profit after deduction of direct costs, is 55.4% for FY-2025, which is above its 5-year median of 37%, indicating increasing margins.

Q.3 Operating Profit Margin of BSE Ltd?

BSE Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 55.53% for FY-2025, which is above its 5-year median of 37.67% indicating increasing margins.

Q.4 Net Profit Margin of BSE Ltd?

BSE Ltd Net Profit Margin is 41% for FY-2025, is above its 5-year median of 29.13%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin (%)	55.4	37
Operating Profit Margin (%)	55.53	37.67
Net Profit Margin (%)	41	29.13

B: Does the business utilize capital efficiently?

Q.5 Return on Asset of BSE Ltd?

BSE Ltd Return on Asset is 13.4%, which is above its 5-year historical median of 4.6%, indicating improved asset utilization efficiency.

Q.6 Return on capital employed (ROCE) of BSE Ltd?

BSE Ltd Return on capital employed is 36.3% for FY-2025, which is above its 5-year historical median of 11.2%. The current ROCE is above its estimated weighted average cost of capital (WACC) of 11.25%, indicating value creation.

Q.7 Return on Equity (ROE) of BSE Ltd?

BSE Ltd Return on equity is 26.8% for FY-2025, which is above its 5-year historical median of 7.7%, indicating the business is making better use of its shareholders capital.

Q.8 Cash conversion cycle of BSE Ltd?

BSE Ltd Cash conversion cycle is -26 days, above its 5-year historical median of -37 days, indicating deteriorated working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover (x)	0.33	0.16
ROE (%)	26.8	7.7
ROCE (%)	36.3	11.2
Cash Conversion Cycle	-26 days	-37 days

C: How much debt does the business have and is it at a sustainable level?

Q.9 Debt to Equity ratio of BSE Ltd?

BSE Ltd Debt-to-Equity ratio is 0.00, which is in line with the industry average of 0.00, indicating similar to debt levels in the industry.

Q.10 Debt to cash flow from operations of BSE Ltd?

BSE Ltd Debt to cash flow from operations is 0, which is at a healthy level.

Ownership & governance

D: Promoter shareholding and pledge status of BSE Ltd?

Q.1 Promoter shareholding and pledge status of BSE Ltd?

Promoters hold 0.00% of the BSE Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does BSE Ltd performance compare with that of its Peers?

Q.1 Revenue growth of BSE Ltd vs industry peers?

BSE Ltd revenue CAGR is 39.45%, compared to the industry median CAGR of 39.45%, indicating stable growth and maintaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth (%)	104.8	39.5
Gross Profit Growth (%)	192.1	69.3
Operating Profit Growth (%)	188.1	74.9
Net Profit Growth (%)	71.3	69.6

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover (x)	0.33	0.16
ROE (%)	26.8	7.7
ROCE (%)	36.3	11.2
Cash Conversion Cycle (days)	-25.55	-37

Valuation & price assessment

Q.1 Stock return of BSE Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 40.97% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	-	41%	94.5%	-40.5%

Q.2 Valuation ratios of BSE Ltd vs historical?

The current P/E ratio of 63.83 is higher than its historical median of 47.17, indicating that the stock is trading above its historical average valuation.

Q.3 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	63.83	47.17	40.56
Price to Book	23.88	11.27	4.06
Price to Sales	32.97	28.37	9.32
EV to EBITDA	45.45	44.04	25.78

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