BSE Ltd. (BSE) AI Stock Analysis

• Market Cap: ₹1.08T
• Dividend Yield: 0.22%
• Average Volume (3M): 4.80M
• Price to Earnings (P/E): 50.2
• Beta (1Y): 1.63
• Revenue Growth: 59.55%
• EPS Growth: 118.89%
• Country: IN
• Employees: 518
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 14.80
• Shares Outstanding: 407,299,070
• 10 Day Avg. Volume: 6,764,087
• 30 Day Avg. Volume: 4,803,324
• PEG Ratio: 0.81
• Price to Book (P/B): 16.97
• Price to Sales (P/S): 25.38
• P/FCF Ratio: 278.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹3,050.00
• Price Target Upside: 2.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 57
• Revenue Forecast (FY): ₹47.90B

• Rating: 71 Outperform
• Price Target: ₹3,343.00 ▲(11.99% Upside)
• Action: Reiterated Date: 11/08/25
• Date: Action: Reiterated 11/08/25

BSE Ltd. scores well due to its strong financial performance, characterized by robust revenue growth and profitability. Technical analysis supports a positive trend, although caution is advised due to overbought signals. Valuation concerns, with a high P/E ratio, slightly dampen the overall score.

Positive Factors

Stable fee-based business model

As operator of a major national exchange and adjacent platforms, BSE benefits from durable fee-based revenue streams (transaction, listing, data, clearing). Network effects and high switching costs for participants support recurring, predictable revenues over the medium term.

Strong revenue growth and high margins

Very high revenue growth paired with industry-leading gross and net margins indicates scalable operations and pricing power. Such structural profitability supports reinvestment, covers fixed costs and preserves cash generation through market cycles over multiple quarters.

Robust balance sheet and strong ROE

Extremely low leverage and a high return on equity provide financial flexibility to fund technology, acquisitions or market initiatives without much refinancing risk. A strong capital structure supports resilience and strategic optionality over the medium term.

Negative Factors

Revenue cyclicality tied to market activity

Core revenues depend on trading volumes, volatility and issuance activity. This structural sensitivity means durable top-line and cashflow volatility across quarters, limiting predictability and exposing earnings to macro and market-cycle swings for several months.

Limited free cash flow conversion

Although FCF is positive, the modest FCF-to-net-income ratio and recent decline constrain internal financing capacity. Over 2-6 months this can limit capital investment, defensive R&D or distributable cash for stakeholders relative to high reported earnings.

Competitive pressure from other exchanges

Structural competition for order flow, listings and data licensing can pressure fee schedules and market share. Over the medium term this may compress growth or force higher investment in technology and pricing incentives to retain participants.

BSE Ltd. Business Overview & Revenue Model

Company Description

BSE Limited, together with its subsidiaries, provides a platform for trading in equity, debt instruments, derivatives, and mutual funds in India and internationally. It offers securities, data dissemination, and depository services. The company also provides clearing and settlement, IT support, training, risk management, and investment services, as well as engages in the corporate social responsibility activities. In addition, it undertakes administration and supervision of SEBI registered investment advisers; operates an electronic spot platform for agricultural commodities; and operates a platform for trading in equities of small-and-medium enterprises. The company was formerly known as Bombay Stock Exchange Limited and changed its name to BSE Limited in July 2011. BSE Limited was founded in 1875 and is based in Mumbai, India.

How the Company Makes Money

BSE Ltd. generates revenue through multiple streams, primarily from transaction fees charged on trades executed on its platform. This includes fees for equity and derivatives trading, as well as listing fees from companies that seek to be listed on the exchange. Additionally, BSE earns income from market data services, providing real-time data and analytics to market participants. The exchange also makes money through its depository services, where it charges fees for maintaining electronic records of securities. Significant partnerships with financial institutions and technology providers enhance its service offerings and contribute to its earnings, along with the growing demand for financial products and services in the Indian market.

BSE Ltd. Financial Statement Overview

Summary

BSE Ltd. exhibits strong financial health characterized by substantial revenue growth and high profitability margins. The balance sheet is robust with negligible leverage and efficient equity use. Cash flow is positive, supporting operational sustainability, despite a slight decline in free cash flow.

Income Statement

BSE Ltd. demonstrates robust revenue growth, with a 131% increase from the previous year, reflecting strong business expansion. The gross profit margin stands at an impressive 86.41%, indicating high efficiency in managing costs relative to revenue. The net profit margin is equally solid at 41.28%, showcasing profitability. EBIT and EBITDA margins further underline operational efficiency, at 71.56% and 70.96% respectively.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.0000036, highlighting minimal leverage and low financial risk. The return on equity is high at 23.85%, reflecting efficient use of equity to generate profits. The equity ratio is 53.73%, suggesting a stable capital structure with a significant proportion of assets financed by equity.

Cash Flow

BSE Ltd. has a positive free cash flow, although it decreased slightly by 4.16% from the previous year. The operating cash flow to net income ratio is strong at 0.32, indicating efficient conversion of income into cash. The free cash flow to net income ratio is 0.20, showing the company can generate cash flow relative to its net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	34.33B	29.57B	13.90B	8.16B	7.43B	5.01B
Gross Profit	22.75B	18.20B	9.32B	5.00B	4.36B	2.40B
EBITDA	24.32B	18.61B	11.06B	3.85B	3.98B	2.21B
Net Income	16.00B	13.26B	7.78B	2.21B	2.54B	1.45B
Balance Sheet
Total Assets	0.00	103.42B	94.50B	59.94B	61.85B	46.27B
Cash, Cash Equivalents and Short-Term Investments	43.81B	28.27B	20.14B	12.79B	18.93B	13.38B
Total Debt	0.00	32.60M	200.00K	200.00K	200.00K	300.00K
Total Liabilities	-57.08B	57.66B	59.96B	31.65B	33.96B	21.11B
Stockholders Equity	57.08B	44.24B	33.02B	27.01B	26.55B	24.92B
Cash Flow
Free Cash Flow	0.00	2.70B	28.15B	-2.81B	14.10B	-1.06B
Operating Cash Flow	0.00	4.23B	29.47B	-1.37B	14.42B	-678.70M
Investing Cash Flow	0.00	-8.46B	-8.88B	-1.11B	-9.80B	-1.89B
Financing Cash Flow	0.00	-2.06B	-1.49B	-1.86B	89.40M	-552.50M

BSE Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2985.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:BSE, the sentiment is Neutral. The current price of 2985.1 is above the 20-day moving average (MA) of 2868.09, above the 50-day MA of 2774.59, and above the 200-day MA of 2580.47, indicating a neutral trend. The MACD of -16.45 indicates Positive momentum. The RSI at 43.12 is Neutral, neither overbought nor oversold. The STOCH value of 31.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:BSE.

BSE Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NAM.INDIA	76 Outperform	₹575.67B	40.97	―	2.14%	9.15%	0.43%
HDFCAMC	72 Outperform	₹1.13T	40.27	―	0.83%	19.21%	24.12%
BSE	71 Outperform	₹1.08T	50.21	―	0.22%	59.55%	118.89%
MCX	70 Outperform	₹637.80B	66.38	―	0.28%	49.22%	100.59%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ABSLAMC	65 Neutral	₹253.22B	25.33	―	3.09%	10.40%	8.23%
CDSL	65 Neutral	₹256.71B	55.83	―	0.82%	3.63%	-11.24%

BSE Ltd. Corporate Events

BSE Confirms Regulatory Compliance on Demat and Remat Reporting for Q3 FY2025-26

BSE Limited has confirmed that, for the quarter ended December 31, 2025, all details of securities that were dematerialised or rematerialised have been duly provided to every stock exchange where its shares are listed, in compliance with Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018. The certification, supported by a confirmation letter from its registrar and transfer agent Kfin Technologies Limited, underscores BSE’s adherence to regulatory requirements on securities handling and transparency, reassuring investors and market participants about the integrity of its share registry and depository processes.

BSE Clarifies Report on Monthly Index Options, Sees No Material Impact

BSE Limited has clarified that while it routinely evaluates opportunities to strengthen its product offerings and enhance market participation, including a previously announced revamp of its BANKEX index effective December 26, 2025, there are currently no specific events related to monthly index option products that warrant disclosure under securities listing regulations. Responding to a media report linking a rise in its share price to plans for more monthly index options, the exchange stated it is merely assessing market needs in its derivatives segment, is unaware of any undisclosed price-sensitive information, and does not expect the reported news to have any immediate material impact on its operations or financial performance, reaffirming its commitment to timely disclosure of any future material developments.