BSE Ltd.
ISIN: INE118H01025 • Market Cap: ₹1.37 Lakh Cr
The 5-Pillar Quality Audit for BSE Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (64.3%), Return on Capital Employed (40.6%), and equity compounding (31.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (51.4%) and 3Y PAT CAGR (52.4%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 48.28 vs PEG of 4.83 and Dividend Yield of 0.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at —, backed by 45.5% institutional ownership.
Key Fundamental Strengths
Superior Capital Efficiency (ROCE: 40.6%)
BSE Ltd. generates exceptional return on capital employed of 40.6%, reflecting pricing power and competitive moat.
Robust Equity Compounding (ROE: 31.5%)
Shareholder equity compounds at a healthy 31.5%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 51.4%)
Revenue has expanded at 51.4% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 52.4%)
Net earnings have compounded at 52.4% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (45.5%)
Mutual funds, domestic DIIs, and foreign FIIs hold 45.5%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Financial Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Financial Services space.
Quantitative Strategy Eligibility
Checking BSE against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 86/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Financial Services Sector Peer Comparison
Compare BSE directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| BSE Ltd. (BSE)Current | 86/100 | ₹1.37 Lakh Cr | 48.28 | 40.6% | 0.00 | — |
| HDFC Bank Ltd. (HDFCBANK) | 74/100 | ₹11.10 Lakh Cr | 14.05 | 12.8% | 1.01 | View |
| ICICI Bank Ltd. (ICICIBANK) | 76/100 | ₹10.06 Lakh Cr | 17.94 | 16.5% | 0.62 | View |
| State Bank of India (SBIN) | 71/100 | ₹9.66 Lakh Cr | 11.20 | 12.2% | 1.38 | View |
| Bajaj Finance Ltd. (BAJFINANCE) | 68/100 | ₹6.72 Lakh Cr | 33.07 | 13.9% | 3.86 | View |
| Life Insurance Corporation of India (LICI) | 87/100 | ₹5.22 Lakh Cr | 8.70 | 37.8% | 0.00 | View |
Frequently Asked Questions: BSE Ltd.
Q:What is the 5-Pillar Fundamental Score for BSE Ltd. (BSE)?
BSE Ltd. has a RupeeTools Fundamental Score of 86/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (99/100), Financial Health (88/100), Growth (99/100), Valuation (32/100), and Ownership Quality (95/100).
Q:Is BSE fundamentally strong for long-term investment?
Yes, BSE exhibits solid fundamental strength with a 86/100 score, driven by a return on equity of 31.5% and a debt-to-equity ratio of 0.00.
Q:Does BSE pass the Coffee Can Investing filter?
Yes! BSE satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does BSE compare against other Financial Services peers?
Within India's Financial Services sector, BSE trades at a P/E of 48.28 and generates an ROCE of 40.6%. Compare its 5-Pillar score of 86/100 against top sector peers like HDFC Bank Ltd. (74/100), ICICI Bank Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.