Company Introduction
Headquarters Location: Mumbai, India
Core Business Summary: BSE is a stock exchange that provides a platform for buying and selling securities, along with other financial services.
Overview
₹ 2,233
57.92
39
₹ 90,676 Cr
Company Overview
Industry Sector: Financial Services
Industry Trends
Industry Growth Next 5 Years: Expected to grow at a CAGR of 12-15%
Key Demand Drivers: Increasing investor participation, growth of the Indian economy, and adoption of digital platforms
Last 5 Year Cagr Industry Growth: 15.6%
Major Competitors: National Stock Exchange (NSE), MCX, and NCDEX
Financials
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | 635 | 572 | 676 | 652 | 606 | 630 | 841 | 925 | 1,568 | 3,212 |
| YoY % | -9.9% | +18.2% | -3.6% | -7.1% | +4.0% | +33.5% | +10.0% | +69.5% | +104.8% | |
| EBITDA | 297 | 240 | 319 | 270 | 178 | 260 | 400 | 376 | 806 | 1,989 |
| YoY % | -19.2% | +32.9% | -15.4% | -34.1% | +46.1% | +53.8% | -6.0% | +114.4% | +146.8% | |
| Net Profit | 177 | 265 | 702 | 199 | 121 | 142 | 245 | 206 | 772 | 1,322 |
| YoY % | +49.7% | +164.9% | -71.7% | -39.2% | +17.4% | +72.5% | -15.9% | +274.8% | +71.2% | |
| EPS | 1.38 | 4.57 | 14.22 | 4.27 | 3.02 | 3.58 | 6.27 | 5.43 | 19.17 | 32.65 |
| YoY % | +231.2% | +211.2% | -70.0% | -29.3% | +18.5% | +75.1% | -13.4% | +253.0% | +70.3% |
Growth Drivers
Historical Growth Drivers: Increase in trading volumes, growth of the Indian economy, and introduction of new products
Future Growth Drivers: Adoption of digital platforms, growth of the derivatives market, and increasing investor participation
Product Innovation: Introduction of new products such as options trading and currency derivatives
New Market Entry: Expansion into new segments such as commodities and currency trading
Technology Adoption: Adoption of artificial intelligence and cloud computing to improve trading efficiency
Strategic Partnerships: Partnerships with other exchanges and financial institutions to increase trading volumes
Market Position
Competitive Position: Second-largest stock exchange in India by market share
Estimated Market Share: 30-35%
Technological Moat: Strong technology platform with high trading capacity and low latency
Strengths
- Strong brand recognition
- High trading volumes
- Diversified revenue streams
- Strong regulatory framework
Weaknesses
- Dependence on market volatility
- Competition from other exchanges
- Regulatory risks
- Technological risks
Valuations
Valuations for BSE
| Formula | Bull | Base | Bear | Margin of Safety |
|---|---|---|---|---|
| Ben Graham | ₹ 691 | ₹ 691 | ₹ 254 | -223.3% |
| Peter Lynch | – | ₹ 327 | – | -583.8% |
Rule of thumb (Lynch):
PEG ≈ 1 → Fairly valued
PEG < 1 → Undervalued (growth cheap relative to earnings)
PEG > 1.5 → Overvalued
Outlook
Balanced Forward Looking Analysis: BSE is expected to continue growing in the next 3-5 years, driven by increasing investor participation, growth of the Indian economy, and adoption of digital platforms. However, the company faces risks such as dependence on market volatility, competition from other exchanges, and regulatory risks.
Opportunities: Expansion into new segments, growth of the derivatives market, and increasing investor participation
Risks: Decline in trading volumes, loss of market share, and regulatory risks
Stock Price Performance
| 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|---|---|---|
| Price | 108.61 | 85.81 | 68.44 | 32.88 | 64.84 | 311.75 | 149.83 | 903.30 | 1,822.00 |
| YoY % | -21.0% | -20.2% | -52.0% | +97.2% | +380.8% | -51.9% | +502.9% | +101.7% |
Stock 3 Year Rolling CAGR
| Metric | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Average |
|---|---|---|---|---|---|---|---|---|---|
| Revenue | 2.11% | 4.46% | -3.58% | -1.14% | 11.54% | 13.66% | 23.08% | 51.43% | 12.70% |
| EBITDA | 2.41% | 4.00% | -17.67% | -1.25% | 30.98% | 13.08% | 26.31% | 74.24% | 16.51% |
| Net Profit | 58.29% | -9.11% | -44.35% | -10.64% | 26.51% | 13.20% | 46.61% | 85.83% | 20.79% |
| EPS | 117.61% | -2.24% | -40.34% | -5.71% | 27.57% | 14.90% | 45.14% | 81.84% | 29.85% |
| Price | – | -14.27% | -27.37% | -1.79% | 111.65% | 32.21% | 42.56% | 129.96% | 38.99% |
