At a Glance
BSE Ltd, the granddaddy of Indian capital markets, has gone full Gen Z with a derivative makeover. Record-breaking options volume, 226% stock return in 1 year, and profits up 6x — yet it still trades at a nosebleed P/E of 85. Time to decode this midlife glow-up (and see if it’s lasting or just F&O filler).
1️⃣ Introduction – B for Boomers? Not Anymore.
For the longest time, BSE was that vintage exchange everyone respected but no one traded on. NSE was the cool kid. BSE was the slightly outdated uncle who still printed circulars.
And then came 2023.
⚡ Index options exploded.
💹 Retail traders piled in.
🪙 Revenue from F&O? Blew through the roof.
📈 Net profit? From ₹200 Cr → ₹1,322 Cr in 2 years.
Now BSE is that guy — older, richer, faster… and finally relevant.
2️⃣ WTF Do They Even Do? – Not Just SENSEX
BSE Ltd runs:
- 🎯 Equity trading (Cash market + SME + Startups)
- ⚡ Derivatives (Index options = current cash cow)
- 🏦 Mutual Fund Distribution (via BSE StAR MF platform)
- 💼 Corporate Bonds and Debt Trading
- 🧾 Insurance distribution, data services, compliance tools
- 👶 Also owns stakes in: CDSL (depository), India INX (GIFT City exchange), BSE Institute
It also developed the S&P BSE SENSEX, India’s most iconic stock market index. But its current mojo? All F&O.
3️⃣ Financials Overview – Profit, Margins, ROE, Growth
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 630 | 841 | 925 | 1,592 | 3,212 |
| Net Profit (₹ Cr) | 142 | 245 | 206 | 772 | 1,322 |
| EPS (₹) | 3.58 | 6.27 | 5.43 | 19.17 | 32.65 |
| OPM (%) | 32% | 42% | 34% | 39% | 55% |
| ROE (%) | 8% | 15% | 12% | 20% | 34% |
| ROCE (%) | 8% | 15% | 12% | 20% | 44% |
✅ 5Y Sales CAGR: 40%
✅ 5Y Profit CAGR: 64%
✅ 1-Year EPS Growth: +70%
✅ Operating leverage: Unlocked and unleashed
4️⃣ Valuation – Is It Cheap, Meh, or Crack?
| Valuation Metric | Value |
|---|---|
| CMP | ₹2,776 |
| Market Cap | ₹1.12 Lakh Cr |
| P/E (TTM) | 85.6x |
| Book Value | ₹109 |
| P/B | 25.5x |
| PEG (Profit CAGR 3Y) | ~1.24 |
EduInvesting Take:
- Objectively? P/E 85 is sky-high.
- But given 226% stock return + explosive profit growth, the market is betting on sustained options volume
- PEG isn’t too wild, thanks to crazy earnings momentum
🎯 FV Range (FY26e):
Assume EPS ~₹42, and P/E range 55–65x
👉 Fair Value Range = ₹2,310 – ₹2,730
CMP ₹2,776 = Fully priced in, with zero margin of safety.
5️⃣ What’s Cooking – News, Triggers, Drama
🔥 F&O Explosion
- BSE’s index options now do volumes > NSE on some days
- Transaction charges increased = more money
📊 SEBI Slaps
- ₹25 lakh penalty for regulatory lapses during 2021–22
- Not material, but reminder: regulators are watching
🌍 India INX (GIFT City)
- Still a baby, but gaining relevance post global listing reforms
- BSE owns and operates India INX
💼 Stake in CDSL
- BSE holds 3.13 Cr shares in CDSL (valued ₹3,800 Cr+)
- Add that to “hidden value” pile
6️⃣ Balance Sheet – How Much Debt, How Many Dreams?
| Item | FY25 |
|---|---|
| Equity Capital | ₹27 Cr |
| Reserves | ₹4,397 Cr |
| Debt | ₹0 Cr |
| Investments | ₹2,845 Cr |
| Total Assets | ₹10,342 Cr |
- 💸 Zero debt
- 💰 Cash & investments = ₹3,000+ Cr
- 📈 Balance sheet is rock-solid, just like NSE… only older and now cooler
7️⃣ Cash Flow – Sab Number Game Hai
| FY | CFO (₹ Cr) | FCF Est. |
|---|---|---|
| FY23 | -₹137 | ₹250 Cr (adjusted) |
| FY24 | ₹2,842 | ₹2,500+ Cr |
| FY25 | ₹410 | ~₹350 Cr |
- FY24 was a windfall year — don’t expect ₹2,800 Cr every year
- Even normalized, FCF > ₹300 Cr easily
8️⃣ Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 44% |
| ROE | 34% |
| Dividend Yield | 0.22% |
| P/E | 85x |
| Working Capital Days | -279 |
| Cash Conversion Cycle | 35 days |
| Interest Coverage | Infinite (no debt) |
Verdict: Very sexy — except the dividend yield, which feels more like a tip.
9️⃣ P&L Breakdown – Show Me the Money
- 3x revenue in 2 years
- 6x net profit
- OPM jumped from 34% to 55%
- Transaction charges on F&O segment = goldmine
- Other income: ₹112 Cr = cherry on top
🔟 Miscellaneous – Shareholding, Promoters
| Category | Mar 2025 |
|---|---|
| FIIs | 16.78% |
| DIIs | 12.33% |
| Public | 48.78% |
| Others | 22.11% |
| No. of Shareholders | 6.68 lakh |
- FIIs and DIIs have returned with force
- Public shareholding dropped, but retail interest is strong
- No promoters — professionally managed and listed since 2017
🧠 EduInvesting Verdict™
BSE Ltd is no longer the boring old-school stock ticker. It’s now:
🚀 Leveraging the F&O boom
💹 Delivering hyper-growth in revenues & profits
💼 Sitting on CDSL stake and ₹3,000 Cr+ war chest
📉 But also, trading at 85x P/E, with temporary triggers baked in
Final Roast Rating:
“BSE is that 149-year-old uncle who suddenly got six-pack abs, bought a Lamborghini, and now runs a YouTube channel on ‘derivatives for beginners’.”
📌 This is a celebration of compounding, not an investment call. Use stop-loss on your expectations.
✍️ Written by Prashant | 📅 June 28, 2025
Tags: BSE Ltd, Bombay Stock Exchange, F&O Boom, CDSL Stake, EduInvesting, High P/E Stocks, Indian Stock Exchange
