ICICI Direct's research report on Multi Commodity Exchange
MCX reported slight moderation in ADTO (Average Daily Turnover) attributable to upfront margin requirement impacting volume. Operational performance remained healthy led by steady revenue and controlled opex. Decent growth in other income and utilization of MAT credit resulted in strong earnings growth. ADTO in commodity futures on the exchange increased by 4% to Rs32,181 crore in Q3FY21, however, a 15% moderation was witnessed sequentially attributable to decline in gold price and kicking in regulatory requirement of upfront margin. Option ADTO remained steady at Rs 860 crore in 9MFY21. Newly launched bullion index futures ADTO has been at Rs 270 crore, while metal index ADTO was reported at ~Rs 50 crore (data pertaining till 20 Jan 2021). Markets share in commodity futures space has remained strong at 96.48% in Q3FY21. Number of unique customers continued to remain steady at 51.5 lakh and authorised person count stood at 56193.
Outlook
We maintain our target at Rs 2000, valuing the stock at ~37x FY23E core earnings and adding net cash after deducting SGF. Maintain BUY.
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