The Bombay Stock Exchange (BSE), Asia's oldest stock exchange, has been a pioneer in driving financial inclusion and innovation in India’s capital markets. The H1 FY25 Investor Presentation reveals BSE's growth trajectory, product diversification, financial performance, and competitive dynamics. This analysis also compares BSE with its primary competitor, the National Stock Exchange (NSE), which is set to launch its IPO shortly.
Historical Performance
| Time |
BSE |
Nifty50 Returns |
Sensex Returns |
Industry Returns |
Sector Returns |
| 1 Day |
13.62% |
1.13% |
1.18% |
8.78% |
0.58% |
| 1 Week |
16.05% |
1.93% |
2.06% |
11.66% |
3.48% |
| 1 Month |
17.7% |
3.12% |
3.94% |
10.96% |
4.42% |
| 3 Months |
88.2% |
-1.81% |
-0.57% |
56.03% |
2.74% |
| 6 Months |
103.16% |
13.06% |
13.64% |
92.01% |
18.04% |
| 1 Year |
106.81% |
19.59% |
18.91% |
96.51% |
32.41% |
| 3 Year |
730.06% |
43.88% |
41.92% |
509.64% |
109.34% |
| 5 Years |
2,985.22% |
105.45% |
100.45% |
1,925.33% |
245.68% |
| 10 Years |
1,833.56% |
188.9% |
186.68% |
1,285.6% |
395.59% |
1. Financial Highlights
BSE's financial performance in H1 FY25 underscores its robust market position despite intense competition.
Key Figures:
- Consolidated Revenue: ₹37,078 million (YoY growth: 19.6%).
- Net Profit: ₹6,102 million (Net Profit Margin: 41%).
- Operating EBITDA: ₹6,729 million (EBITDA Margin: 50%, improved from 37% YoY).
Revenue Mix:
- Transaction Charges: ₹9,072 million (67% YoY growth).
- Services to Corporates: ₹2,147 million.
- Other Operating Income: ₹1,072 million.
- Treasury Income: ₹1,250 million.
Peer Comparison:
NSE dominates with an estimated market share exceeding 90% in equity derivatives and significant traction in equity cash volumes. While BSE is expanding its derivatives segment, NSE’s higher trading volumes and operational efficiency give it a competitive edge.
2. Segment Performance
Equity Cash:
- Average Daily Turnover (ADT): ₹93,963 million, reflecting an 88% YoY growth.
- Transaction Charges: ₹850 million (74% YoY growth).
Equity Derivatives:
- Relaunched in May 2023, BSE's derivatives segment shows promising traction:
- Average Daily Turnover: ₹144 trillion in H1 FY25.
- Contracts Traded: 151 million.
Comparison with NSE:
- NSE dominates the derivatives segment, contributing over 90% of the total equity derivatives turnover in India. BSE’s recent relaunch of derivatives and competitive pricing for Sensex and Bankex options aim to capture a greater market share.
Mutual Fund Platform (BSE StAR MF):
- Revenue: ₹1,067 million (70% YoY growth).
- Orders Processed: 304 million, a sharp increase from 179 million in H1 FY24.
- Distributors: 78,382 across 721 cities.
Insights:
BSE StAR MF is India’s largest mutual fund platform, simplifying transactions for distributors and investors. In comparison, NSE’s MFSS platform has yet to achieve similar reach or processing volumes.
India INX:
BSE’s international exchange, based in GIFT City, facilitates 24-hour trading across global asset classes:
- Access to 135+ global exchanges.
- Growth in foreign currency bonds and derivatives trading.
Insights:
India INX gives BSE a unique edge in global financial markets. NSE’s upcoming IFSC platform is expected to intensify competition in this space.
3. Diversification
Diversified Revenue Streams:
- Trading and Clearing: Transaction charges from cash and derivatives.
- Services to Corporates: Listing fees for equity and debt instruments.
- Treasury Income: Income from clearing and settlement funds.
- Other Income: Data dissemination and training services.
Comparison:
While NSE benefits from higher trading activity in derivatives, BSE leverages its diverse revenue streams, including the fast-growing StAR MF platform and international trading via India INX.
4. Product Portfolio and Innovations
BSE offers a wide range of services tailored to corporates, retail investors, and international clients:
- Equity and Derivatives: For trading in stocks and indices.
- Mutual Funds: BSE StAR MF platform.
- Debt Instruments: Corporate and government bonds.
- Insurance Distribution: Through joint ventures like Ebix Insurance.
- Commodity Trading: Gold and other commodities via India INX.
Innovations:
- T+1 settlement cycle.
- StAR MF Plus for distributors and advisors.
- Launch of EGR (Electronic Gold Receipts) to digitize gold investments.
Peer Outlook:
| Stock |
Current Price |
PE TTM Price to Earnings |
Market Capitalization |
Dividend yield 1yr % |
Net Profit Qtr |
Net Profit Annual YoY Growth % |
Operating Revenue Qtr |
Revenue Growth Qtr YoY % |
Price to Book Value |
| BSE Ltd. |
5194.9 |
85.04 |
70326.69 |
0.29% |
346.75 |
252.74% |
813.3 |
124.66% |
20.35 |
| Multi Commodity Exchange |
6488.25 |
95.34 |
33089.04 |
0.12% |
153.62 |
-44.21% |
285.58 |
72.96% |
24 |
| Indian Energy Exchange |
178.15 |
40.39 |
15885.51 |
1.40% |
108.32 |
14.68% |
139.4 |
28.44% |
16.37 |
5. Shareholding Pattern
| Summary |
Sep 2024 |
Jun 2024 |
Mar 2024 |
Dec 2023 |
Sep 2023 |
Jun 2023 |
Mar 2023 |
Dec 2022 |
Sep 2022 |
Jun 2022 |
Mar 2022 |
Mar 24, 2022 |
| Promoter |
0% |
0% |
0% |
0% |
0% |
0% |
0% |
0% |
0% |
0% |
0% |
0% |
| FII |
13.0% |
11.1% |
13.0% |
12.0% |
7.9% |
8.8% |
7.6% |
8.4% |
10.6% |
11.0% |
12.8% |
12.3% |
| DII |
11.7% |
11.6% |
12.7% |
11.3% |
8.1% |
0.5% |
0.7% |
0.6% |
0.6% |
1.0% |
1.0% |
1.3% |
| Public |
52.4% |
54.5% |
51.9% |
53.6% |
58.9% |
64.8% |
65.9% |
64.8% |
62.8% |
61.8% |
60.2% |
60.2% |
| Others |
22.9% |
22.8% |
22.4% |
23.1% |
25.1% |
25.9% |
25.9% |
26.2% |
26.0% |
26.2% |
26.0% |
26.3% |
6. Strategic Initiatives and Growth Drivers
- Technological Advancements: Fastest trading platform globally (4 microseconds).
- Retail Expansion: Enhanced penetration in tier-2 and tier-3 cities.
- ESG and Sustainability: Green bonds and initiatives to promote responsible investing.
Future Outlook:
- BSE aims to increase its equity derivatives market share by leveraging competitive pricing and innovative products.
- NSE’s IPO will boost its financial strength, potentially funding further expansion and innovation.
7. Conclusion
BSE’s H1 FY25 performance reflects a well-rounded strategy focusing on revenue diversification and market penetration. While NSE dominates key segments, BSE’s initiatives, including StAR MF and India INX, position it for steady growth. The competition between BSE and NSE is expected to intensify post-NSE’s IPO, creating a dynamic landscape for India’s capital markets.
Discalimer!
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