MOSL: MCX (Buy)-Sporadic increase in volumes drives strong performance
MCX: Sporadic increase in volumes drives strong performance
(MCX IN, Mkt Cap USD0.7b, CMP INR1017, TP INR1250, 23% Upside, Buy)
Operationally in line; PAT exceeds estimate
- Revenue increased 26% QoQ to INR1,002m in 2QFY20, marginally below our estimate of INR1,044m.
- Volumes were up 40.2% YoY to INR23.2t, mainly led by Gold (+131% YoY) and Crude (+88% YoY), partly offset by lower base metal volumes. Aluminum volumes declined 71% YoY, while copper, lead and zinc volumes were down 25%, 52% and 50%, respectively.
- EBIT increased 82% QoQ to INR430m, with the margin of 43% exceeding our estimate of 40.4%.
Multi Commodity Exchange of India Limited (MCX) is a holding company. The Company is engaged in Facilitating Trading, and Clearing and Settlement of Commodity Derivatives. It operates as a commodity futures exchange. It offers its products in various segments, such as Bullion, including Gold, Gold Mini, Gold Petal and Silver; Base Metals, including, Aluminum, Copper, Lead, Nickel and Zinc; Energy, including Crude Oil, Brent Crude Oil and Natural Gas, and Agro Commodities, including Cardamom, Cotton, Crude Palm Oil, Kapas and Mentha Oil. Its MCXCOMDEX is a real-time commodity index based on commodity futures price of an exchange. Other commodity indices developed by the Company include MCXAgri, MCXEnergy and MCXMetal. Its online trading platform is accessible to its members through its trader workstation or computer-to-computer link (CTCL) using multiple connectivity media, including point of presence (POP) connectivity, very small aperture terminal (VSATs) and the Internet.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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