Buy Multi Commodity Exchange of India, target price Rs 2150: ICICI Direct

ICICI Direct has buy call on Multi Commodity Exchange of India with a target price of Rs 2150. The current market price of Multi Commodity Exchange of India is Rs 1647. Time period given by analyst is year when Multi Commodity Exchange of India price can reach defined target. ICICI Direct recommended to keep stop loss at Rs 1330.

Multi Commodity Exchange of India, incorporated in the year 2002, is a Mid Cap company (having a market cap of Rs 8424.93 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-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 145.64 Crore, up 23.37 % from last quarter Total Income of Rs 118.05 Crore and up 46.73 % from last year same quarter Total Income of Rs 99.26 Crore. Company has reported net profit after tax of Rs 64.62 Crore in latest quarter.

The company’s top management includes Mr.Saurabh Chandra, Mr.P S Reddy, Mr.Shankar Aggarwal, Dr.Deepali Pant Joshi, Mr.Amit Goela, Mr.Hemang Raja, Mr.Chandra Shekhar Verma. Company has Shah Gupta & Co. as its auditors. As on 30-09-2022, the company has a total of 5 Crore shares outstanding.

Investment Rationale
Despite a relatively new entrant in F&O, MCX has started witnessing an uptrend on the back of notable delivery based buying since last quarter. MCX has been a market underperformer in the last couple of years and remained below its mean+2*sigma levels of 1640. In the recent up move, the stock moved above it after consolidation of almost two years. The brokerage expects the stock to find fresh positive momentum and lead towards its life-time highs.

Promoter/FII Holdings
Promoters held $Parser.toNumber($MarketsData-marketResults.newShareHolding.summary.promoters.percentage) per cent stake in the company as of 30-Sep-2022, while FIIs owned 28.51 per cent, DIIs 34.87 per cent.