Home Commodities MCX share price: Buy Multi Commodity Exchange of India, target price Rs...

MCX share price: Buy Multi Commodity Exchange of India, target price Rs 1,600: ICICI Direct

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ICICI Direct has buy call on Multi Commodity Exchange of India with a target price of Rs 1600. The current market price of Multi Commodity Exchange of India is Rs 1,268.4 Time period given by analyst is year when Multi Commodity Exchange of India price can reach defined target.

Multi Commodity Exchange of India, incorporated in the year 2002, is a Mid Cap company (having a market cap of Rs 6493.88 crore) operating in Financial Services sector.

Multi Commodity Exchange of India key Products/Revenue Segments include Fees & Other Charges and Other Operating Revenue for the year ending 31-Mar-2021.




Financials

For the quarter ended 31-03-2022, the company has reported a Consolidated Total Income of Rs 121.04 crore, up 16.32 % from last quarter Total Income of Rs 104.06 crore and up 11.60 % from last year same quarter Total Income of Rs 108.46 crore. Company has reported net profit after tax of Rs 36.65 crore in latest quarter.

Investment Rationale
MCX’ share price has grown by ~44% over the past three years (from Rs 827 in May 2019 to Rs 1212 levels in May 2022). Being a market leader in commodities exchange and a beneficiary of increase in option volume, the brokerage maintains BUY rating on the stock.

Key triggers for future stock performance

  • Diversified product mix aids topline amid volatility in prices
  • Decline in future turnover being replaced by string traction in options. Nonlinear growth in option volume to aid business & earnings growth
  • New product launch – electricity contracts, higher commodity based-delivery to act as growth catalyst
  • Continued addition of participants to aid volume growth


Promoter/FII Holdings
Promoters held $Parser.toNumber($MarketsData-marketResults.newShareHolding.summary.promoters.percentage) per cent stake in the company as of 31-Mar-2022, while FIIs owned 28.19 per cent, DIIs 46.66 per cent.

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