Buy Multi Commodity Exchange of India, target price Rs 1795: ICICI Securities

ICICI Securities has buy call on Multi Commodity Exchange of India with a target price of Rs 1795. The current market price of Multi Commodity Exchange of India is Rs 1578.15.


Multi Commodity Exchange of India, incorporated in the year 2002, is a Mid Cap company (having a market cap of Rs 8051.37 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
Growth in options, stable futures volumes and reduction in software cost post migration to new platform enliven prospects for FY24E, noted the brokerage. ICICI Securities estimates EBITDA margin of 46%/56% in FY23 /FY24E respectively. Further it expects core PAT of Rs 2.3 billion in FY24 (CAGR of 27% between FY22-FY24E driven by lower software costs).

Promoter/FII Holdings
Promoters held 0 per cent stake in the company as of 30-Sep-2022, while FIIs owned 28.51 per cent, DIIs 34.87 per cent.