The BSE Ltd(NSE: BSE): The BSE PSU index saw a rise of 381.89 percent in the last year. This happened due to the EPS (Earnings per Share) upgrade and RoE (Return on Equity) improvement.
But despite this, its price-earnings ratio (PE) remains 40 percent less than the Nifty index. Brokerage firm Jefferies suggests that this discount provides a rerating potential of 15 percent to average levels.
A change in the government’s stance on ‘value maximization’ for PSUs may take it above average. In the past 12 months, Nifty has gained 22 percent. BSE PSU has gained 18 percent so far in 2024. This share has given 1,142% return so far in 5 years.
In the year 2023, the PSU index saw a gain of 55.3 percent, while the Nifty saw a jump of 20 percent. The Jefferies report said that the ROE of PSUs fell from 14.15 percent to 4.6 percent, mainly due to the pressure of PSU banks.
PSU stock rose due to government capital expenditure and sector-specific reasons. Despite the better performance, the PE of the PSU index stood at 12.1x, which is 40 percent less than the Nifty.
Nifty is currently trading at 22.3x PE. Jefferies’s valuation check between 2006 and 2012 indicates that PSU banks, coal/power utilities, and selected oil and infrastructure companies have higher multiples.
Brokerage’ Top PSU Picks
Brokerage top PSU picks include the State Bank of India (SBI), Coal India (Coal India), and NTPC. While in the case of NTPC, 10-12 percent EPS growth is expected, in POWERGRID only single-digit EPS growth is expected.
They stated that both of them have the potential to rerate based on the example from 2006-12. Coal India will benefit from planned thermal capacity addition.
Despite ample coal reserves, there is a need to increase mining activity to meet demand. The global brokerage said the stock appears undervalued at 8.3x March 2025E PE and offers a 6 percent dividend yield.
About BSE Ltd Company
BSE Limited is a stock exchange company based in India. The Company offers a transparent trading market for equity, debt instruments, and equity derivatives. It also provides interest rate derivatives and currency derivatives.
The company operates in Facilitating Trading in the Securities segment and related ancillary services. The platform also allows for the trading of equity in small and medium-sized enterprises (SMEs).
The company also offers a wide range of services to participants in the capital markets, such as risk management, clearing and settlement, market data, education, and market data services.
The systems and processes of the Indian Capital Market are designed to protect market integrity, stimulate competition and innovation across all market segments, and drive growth.
Fundamental Analysis of BSE Ltd
| Market Cap | ₹ 31,676 Cr. |
| Current Price | ₹ 2,326 |
| 52-wk High | ₹ 2,599 |
| 52-wk Low | ₹ 406.20 |
| Stock P/E | 45.37 |
| Book Value | ₹ 229 |
| Dividend | 0.51 % |
| ROCE | 13.2 % |
| ROE | 8.65 % |
| Face Value | ₹ 2.00 |
| P/B Value | 10.2 |
| OPM | 44.2 % |
| EPS | ₹ 56.3 |
| Debt | ₹ 0.02 Cr. |
| Debt to Equity | 0.00 |
| Year | 1st Target | 2nd Target |
| 2024 | ₹2400 | ₹2565 |
| 2025 | ₹2654 | ₹2897 |
| 2026 | ₹3000 | ₹3212 |
| 2027 | ₹3324 | ₹3543 |
| 2028 | ₹3654 | ₹3765 |
| 2029 | ₹3876 | ₹4000 |
| 2030 | ₹4231 | ₹4436 |
To better understand how the market is performing, let’s look at the outlook of this share in the previous years.
However, investors should be aware of the risks and the market conditions before making any investment decision.
Last 5 Years’ Sales:
| 2019 | ₹ 652 Cr |
| 2020 | ₹ 606 Cr |
| 2021 | ₹ 630 Cr |
| 2022 | ₹ 841 Cr |
| 2023 | ₹ 1,307 Cr |
Last 5 Years’ Net Profit:
| 2019 | ₹ 199 Cr |
| 2020 | ₹ 121 Cr |
| 2021 | ₹ 142 Cr |
| 2022 | ₹ 245 Cr |
| 2023 | ₹ 753 Cr |
Last 5 Years’ Debt-To-Equity Ratio:
| 2019 | 0 |
| 2020 | 0 |
| 2021 | 0 |
| 2022 | 0 |
| 2023 | 0 |
Last 10 Years’ Profit Growth:
| 10 Years: | 3% |
| 5 Years: | -20% |
| 3 Years: | 28% |
| Current Year: | 116% |
Last 10 years’ Return on Equity (ROE):
| 10 Years: | 9% |
| 5 Years: | 7% |
| 3 Years: | 9% |
| Last Year: | 9% |
Sales Growth Over 10 Years:
| 10 Years: | 6% |
| 5 Years: | 6% |
| 3 Years: | 15% |
| Current Year: | 46% |
Conclusion
This article is a complete guide about BSE Ltd Share. This information and forecasts are based on our research, company fundamentals, history, experiences, and technical analyses.
Also, We have discussed the share’s prospects and growth potential in detail.
This information will help you in your further investment.
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Disclaimer: Dear readers, we’d like to inform you that we are not authorized by SEBI (Securities and Exchange Board of India). The information on this site is only for informational and educational purposes and shouldn’t be considered financial advice or stock recommendations. Also, the share price predictions are completely for reference purposes. The price predictions will only be valid when there are positive signs on the market. Any uncertainty about the company’s future or the current state of the market will not be considered in this study. We are not responsible for any financial loss you might incur through the information on this site. We provide timely updates about the stock market and financial products to help you make better investment choices. Do your research before any investment.
