🧩 1. At a Glance
BSE Ltd – the OG Indian stock exchange – has been on a steroid-fueled rally over the past year, delivering a jaw-dropping +217% return in 12 months. But July 2025? Total vibe shift. The stock has corrected ~21% from its peak of ₹3,030 to ₹2,387. So what gives? Is it just profit booking, or are the fundamentals finally catching up to the froth?
🧨 2. Intro: From Dalal Street Darling to “Wait, What Happened?”
Let’s rewind.
BSE became the accidental AI and SME bull run proxy. It owns and operates the platform that lists some of the most explosive SME stocks, and when SME investors get rich, BSE gets richer. Add high-frequency trading (HFT) infra, index revenues, and clearing services — and you’ve got a tech-meets-finance hybrid story.
But… is this party over? Is NSE going to punch back? Is SEBI’s ₹165 Cr fee notice the buzzkill?
Time to break this down.
🏢 3. WTF Do They Even Do?
BSE is not just a stock exchange anymore. It makes money from:
- Transaction Fees – Equity, SME, debt, derivatives
- Listing Fees – IPOs, SME, debt instruments
- Clearing & Settlement – via ICCL (Indian Clearing Corp Ltd)
- Index Licensing – S&P BSE SENSEX, Asia Index (acquired fully in 2024)
- Mutual Fund Distribution
- Data Services – APIs, market feeds
- Tech Infrastructure – For algo trading, surveillance tools
Also:
- Owns BSE SME – fastest growing SME listing platform
- Recently sold BSE Institute Ltd for ₹16.9 Cr
- Winding down non-core subsidiaries (BIRDI)
💰 4. Financials Overview – Profits, Margins, Growth, ROE
| Metric | FY24 | FY25 |
|---|---|---|
| Revenue | ₹1,592 Cr | ₹3,212 Cr |
| Net Profit | ₹772 Cr | ₹1,322 Cr |
| OPM | 39% | 55% |
| ROE | 21% | 34% |
| 5Y PAT CAGR | 64% | ✅ Insane |
| Dividend Payout | 26% | 23% |
🧠 TTM growth in Net Profit is 189%. That’s not just growth, that’s vertical lift-off.
📊 5. Valuation – Is It Cheap, Meh, or Crack?
| Metric | Value |
|---|---|
| P/E (TTM) | 73.6x |
| P/B | 21.9x |
| CMP | ₹2,387 |
| Market Cap | ₹96,927 Cr |
👀 Historically BSE traded at low double-digit P/E. Now it’s in startup unicorn territory.
🔥 Fair Value Range: ₹1,600–1,900
🧮 Based on sustainable EPS of ₹25–30 (post-normalization), 60–65x P/E is generous.
🍿 6. What’s Cooking – News, Drama & Bonus Mania
- 2:1 Bonus Issued (April 2025) → Retail euphoria maxed
- SEBI Fee Shock: Potential ₹165 Cr+ GST demand notice for FY07–FY24
- Massive Stake Bought in Asia Index Pvt Ltd – Now 100% owned
- Disinvestment & Clean-up – Selling subsidiaries, shutting BIRDI
- SME Listings Slowdown? Early signs of tapering activity
🧾 7. Balance Sheet – How Much Debt, How Many Dreams?
- 🟢 Zero Debt
- 🏦 Cash & Equivalents: Over ₹2,000 Cr+
- 📦 Investments: ₹2,845 Cr
- 🧼 Very light asset model – Fixed Assets just ~₹300 Cr
- 🤌 ROCE has jumped from 12% → 44% in FY25!
This is a rich uncle’s balance sheet. Clean, cash-heavy, dream-funded.
💵 8. Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | FCF Status |
|---|---|---|
| FY23 | -₹137 Cr | Negative due to working capital |
| FY24 | ₹2,842 Cr | Massive spike |
| FY25 | ₹410 Cr | Normalizing again |
🔁 Note: Other Income has fluctuated wildly due to MTM gains on treasury ops. Don’t get fooled.
📐 9. Ratios – Sexy or Stressy?
| Ratio | Value |
|---|---|
| ROCE | 44% |
| ROE | 34% |
| OPM | 55% |
| Debt/Equity | 0.00 |
| Cash Conversion Cycle | ~35 days |
📉 The only red flag? Valuation. Everything else screams health.
🧾 10. P&L Breakdown – Show Me the Money
- 📈 Revenue doubled YoY in FY25
- 🏦 Operating Profit shot up to ₹1,754 Cr
- 💥 Net Profit at ₹1,322 Cr – a 71% jump YoY
- 🎯 EPS: ₹32.65 (TTM)
Even without other income, core business is now a beast.
🆚 11. Peer Comparison – Who Else is in the Game?
| Metric | BSE | MCX | IEX |
|---|---|---|---|
| Market Cap | ₹96.9K Cr | ₹41.7K Cr | ₹18.4K Cr |
| P/E | 73.6x | 74.5x | 44.4x |
| ROE | 34.1% | 34.3% | 40.5% |
| Dividend Yield | 0.24% | 0.36% | 1.44% |
BSE is now priced like a tech growth stock — but it’s still an exchange infra play. More like IEX than Infosys.
🧬 12. Miscellaneous – Shareholding, Promoters, Buzz
- ❌ No Promoter Holding
- 👨👩👧 Public Holding: Down from 65.9% to 48.8% in 1 year
- 🧊 FII Holding: Jumped to 16.78% from 0% in 2022
- 📈 No. of shareholders: Up from 4.4L to 6.7L – Retail boom confirmed
🧑⚖️ 13. EduInvesting Verdict™
BSE was the trade of the last 12 months. SME frenzy + algo boom + index licensing + bonus euphoria = stock that became the party. But now?
⛔️ SEBI fees, bonus overhang, and sky-high valuations are cooling things down. Even great companies have to take a breath.
Is the rally over? Maybe not forever. But for now? Yeah, the stock is digesting gains.
📌 Tags:
BSE stock analysis, BSE Ltd valuation, SME exchange India, BSE bonus issue, SEBI BSE news, MCX vs BSE, BSE stock fall July 2025, Dalal Street, Asia Index acquisition, SME listing slowdown
✍️ Written by Prashant | 📅 11 July 2025
