Multi Commodity Exchange of India Ltd., incorporated in the year 2002, is a Mid Cap company (having a market cap of Rs 8708.99 Crore) operating in Financial Services sector.
Multi Commodity Exchange of India Ltd. key Products/Revenue Segments include Fees & Other Charges and Other Operating Revenue for the year ending 31-Mar-2021.
Financials
For the quarter ended 30-09-2021, the company reported a Consolidated Total Income of Rs 99.26 Crore, down -8.89 % from last quarter Total Income of Rs 108.94 Crore and down -27.82 % from last year same quarter Total Income of Rs 137.52 Crore. Company reported net profit after tax of Rs 33.20 Crore in latest quarter.
Investment Rationale
The key question for
is its ability to recover lost volumes post the impact of the higher-margin trading norm and establish business traction in new products. Basis H1FY22 ADTV and Oct’21 trend, we factor-in futures/options (notional) ADTV of Rs300bn/80bn for FY22E and Rs400bn/200bn for FY23E. The brokerage continues to reiterate that ADTV recovery need not necessarily be linear and MCX remains one of the better plays on commodity price volatility. While any significant traction in optionalities (table 4) remains distant, increase in options volumes can become a strong investment thesis. It maintains ADD with a target price of Rs1,965.
Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 30-Sep-2021, while FIIs owned 36.03 per cent, DIIs 41.87 per cent.
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