Please refer to important disclosures at the end of this report
1
Multi Commodity Exchange (MCX) of Indian Ltd. is a leading electronic
commodity futures exchange in India promoted by FTIL facilitating online trading,
clearing & settlement operations for futures market across the country. Post a
couple of years of transition phase, MCX seem to be returning to stable mode.
Further, considering structural growth visibility in volume, MCX might show a
good set of numbers in coming years. The stock price had a decent run up afte
r
the hike in transaction charges and regulatory approvals of options trading. SEBI
has given in-principle nod for introduction of options in commodities trading and
the management has indicated the same should start by Q4FY17. At Initial stage
options will be introduced in key liquid commodities such as crude oil, silver and
gold with full ramp-up expected post a meaningful take-off in volumes in these
commodities. Though the management has ruled out any significant
cannibalization impact on futures due to options, it is expected that the same
should get compensate from the incremental gains from options. Improvement in
the Average daily traded volume (ADTV), introduction of options trading
including currency derivatives and institutional participation on commodit
y
exchanges are the key triggers for MCX going ahead. The Company is virtuall
y
debt free and has been maintaining a healthy dividend payout of 42.3%. Hence
Buy.
BUY
CMP `1,239
Stock Info
Sector
Beta 0.7
Bloomberg Code
Shareholding Pattern (%)
Promoters 0.0
MF / Banks / Indian Fls 47.7
FII / NRIs / OCBs 20.7
Indian Public / Others 31.5
Abs. (%) 3m 1yr 3yr
Sensex (7.6) 0.3 25.5
MCX 24.7 44.5 161.0
52 Week High / Low 1420/726
Avg. Daily Volume 56,999
Miscellaneous
Market Cap (` cr) 6,316
5
BSE Sensex 25,860
Nifty 7,966
Face Value (`)
Reuters Code MCEIQF.BO
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
Multi Commodity Exchange
Others | Miscellaneous
November 25, 2016
Multi Commodity Exchange | Miscellaneous
November 25, 2016
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement Multi Commodity Exchange
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
p
eriod
)
: Reduce
(
-5% to -15%
)
Sell
< -15
)