BSE Stock Price Analysis and Quick Research Report. Is BSE an attractive stock to invest in?

Around 2% of India's total population invests in financial assets. The penetration of the mutual fund industry in India is close to 7% (Based on the number of PAN cardholders). This under penetration of the mutual fund industry offers a huge opportunity for the industry to grow.

Migration to financial savings, wider distribution and sustainable performance are expected to enable growth in the industry.

Also, increasing financial literacy among investors, digitization and the number of mediums available tend to attract more investors to invest in the financial markets.

BSE stock price today is Rs 2754.1. To understand the functions of the BSE better, you must go through the following points:

Key Financials –

• Profitability: Profit margin (PAT margin) of the company shows how well a company controls its cost. It is one of the important indicators to show the financial health of the company. Net profit of the company is Rs 753.39 Cr and the compounded growth of profit in the past 3 years is 97.8604071540505 %. The PAT margin of BSE is 59.9003 %.

• EPS growth: Investors should ensure the EPS figure is growing faster than revenue numbers because it indicates company management is increasing the efficiency with which it runs the company. In BSE , the EPS grew by 351.7099 % YOY. 

 Financial Ratios –

•  Return on Equity (ROE): BSE has a healthy ROE track record. The ROE of BSE is at 29.4698 % for the latest year.

• P/E Ratio: Relative valuation metrics like the P/E ratio can be used to see if the stock of BSE is worth at the current levels at Rs 2754.1. BSE is trading at a current P/E ratio of 45.1993 and the average historical P/E for the last 5 years was 35.9441.

• P/B ratio can be one of the best metrics to value such companies. Currently, BSE is trading at a P/B of 29.4208 . The average historical P/B for the last 5 years was 4.3841. This can be compared with the Market price per share in order to know if the stock is undervalued or overvalued.

• Share Price: - The current share price of BSE is Rs 2754.1. One can use valuation calculators of ticker to know if BSE share price is undervalued or overvalued.