BSE: 534091 | NSE: MCX | Finance - Stock Broking | Small Cap
Past 10 year's financial track record analysis by Moneyworks4me indicates that Multi Commodity Exchange Of India Ltd is a good quality company.
The key valuation ratios of Multi Commodity Exchange Of India Ltd's currently when compared to its past seem to suggest it is in the Overvalued zone.
The Price Trend analysis by MoneyWorks4Me indicates it is Weak which suggest that the price of Multi Commodity Exchange Of India Ltd is likely to Fall in the short term. However, please check the rating on Quality and Valuation before investing.
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.
| Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROCE % ⓘ | 12.7% | 11.3% | 11.8% | 9.5% | 9.8% | 15.9% | 14.6% | 9.6% | 9.5% | 4.8% | - |
| Value Creation Index ⓘ | -0.1 | -0.2 | -0.1 | -0.3 | -0.3 | 0.2 | 0.1 | -0.3 | -0.3 | -0.6 | - |
Growth Parameters ⓘGrowth Parameters Colour Code Guide ⓘ | |||||||||||
| Sales ⓘ | 222 | 235 | 259 | 260 | 300 | 398 | 391 | 367 | 514 | 684 | 1,002 |
| Sales YoY Gr. | - | 5.6% | 10.4% | 0.2% | 15.5% | 32.6% | -1.8% | -6.1% | 40% | 33.1% | - |
| Adj EPS ⓘ | 24.7 | 22.5 | 24.8 | 21.3 | 28.7 | 46.4 | 44.2 | 28.1 | 29.2 | 16.3 | 100.5 |
| YoY Gr. | - | -8.8% | 10.4% | -14.4% | 34.9% | 61.7% | -4.8% | -36.3% | 3.8% | -44.2% | - |
| BVPS (₹) ⓘ | 272.9 | 290 | 299.8 | 305.2 | 309.7 | 346.9 | 370.1 | 381.1 | 405.7 | 423.3 | 510.6 |
| Adj Net Profit ⓘ | 125 | 115 | 127 | 108 | 146 | 237 | 225 | 143 | 149 | 83.1 | 512 |
| Cash Flow from Ops. ⓘ | 69.6 | 77.5 | -32.1 | 99.3 | 258 | 449 | -184 | 391 | 141 | 521 | - |
| Debt/CF from Ops. ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - |
CAGR Colour Code Guide ⓘ
| 9 Years | 5 Years | 3 Years | 1 Years | |||||
|---|---|---|---|---|---|---|---|---|
| Sales ⓘ | 13.3% | 17.9% | 20.5% | 33.1% | ||||
| Adj EPS ⓘ | -4.5% | -10.7% | -28.3% | -44.2% | ||||
| BVPSⓘ | 5% | 6.5% | 4.6% | 4.4% | ||||
| Share Price | 20.3% | 32% | 52.5% | 61.7% | ||||
Performance Ratio Colour Code Guide ⓘ
| Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 | TTM | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on Equity % ⓘ | 9.3 | 8 | 8.4 | 7 | 9.3 | 14.1 | 12.3 | 7.5 | 7.4 | 3.9 | 21.5 |
| Op. Profit Mgn % ⓘ | 35.9 | 32.1 | 30.7 | 27.7 | 31.4 | 44.8 | 47.4 | 44 | 29.1 | 9.4 | 60.6 |
| Net Profit Mgn % ⓘ | 56.4 | 48.8 | 48.8 | 41.7 | 48.7 | 59.5 | 57.7 | 39.1 | 29 | 12.2 | 51.1 |
| Debt to Equity ⓘ | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | - |
| Working Cap Days ⓘ | 1,163 | 1,166 | 1,389 | 1,661 | 1,337 | 1,085 | 1,305 | 1,317 | 885 | 881 | 392 |
| Cash Conv. Cycle ⓘ | -49 | -28 | -53 | -75 | -74 | -59 | -44 | -36 | -18 | -6 | 96 |
Return on Equity has increased versus last 3 years average to 21.50%
Sales growth is growing at healthy rate in last 3 years 20.51%
Sales growth is good in last 4 quarters at 56.63%
Net Profit has been subdued in last 3 years -28.27%
| Standalone | Consolidated | |
|---|---|---|
| TTM EPS (₹) | 73.5 | 100.5 |
| TTM Sales (₹ Cr.) | 899 | 1,002 |
| BVPS (₹.) ⓘ | 371.3 | 510.6 |
| Reserves (₹ Cr.) ⓘ | 1,842 | 2,553 |
| P/BV ⓘ | 14.88 | 10.82 |
| PE ⓘ | 75.12 | 54.98 |
| From the Market | |
|---|---|
| 52 Week Low / High (₹) | 2917.00 / 7046.70 |
| All Time Low / High (₹) | 238.30 / 7046.70 |
| Market Cap (₹ Cr.) | 28,176 |
| Equity (₹ Cr.) | 51 |
| Face Value (₹) | 10 |
| Industry PE ⓘ | 19.9 |
| Pledged * | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Stock pulse is a format where we explore the most important questions to understand the company's performance.
MCX has a 96.3% share in the Indian commodity futures market. The company charges exchange fees on trades placed in commodities like Crude oil, Silver, Gold, and Copper as well as Agro commodities. It is keen on new product launches and small-size contracts of existing commodities which shall help it hold its lion's share in the commodities market. Commodity futures contribute 57% of the revenue whereas commodity options contribute 43% of revenue.
MCX has been under the spotlight for a long time about its transition to a new commodity trading platform from the one developed by its erstwhile promoter Financial Technologies India Ltd, now known as 63 Moons. It had recently extended its contract with 63 Moons till December 2023 at a higher cost which resulted in a fall of 12% in the stock price on the date of this announcement. The contract with 63 Moons was very expensive and thus was putting a major dent in the company’s profitability. Even though MCX was keen on getting the new platform launched as soon as possible, there were a lot of hurdles concerning all the necessary tests done and getting approvals from SEBI. All these software platform issues that MCX had with launching the new platform with TCS have finally ended and the company has now successfully shifted to the new platform. There were glitches seen in the starting days of the launch, but now the platform seems to be running fine.
Commodity Options segment is gaining significant traction. Single-side Average Daily Notional Turnover (ADTO) has spiked 7x/3x in 2022/2023 and further doubled to ~Rs.62,000 Cr in Q1 FY24. The lower margin requirement in options makes it a preferred instrument for hedgers/speculators to trade. Trader’s interest seems to drop in the futures segment as visible from the ADTO in futures.
The major investment for the new platform is capital in nature. The company won’t be paying any charges for the first year. Post that, maintenance costs are negligible and depreciation will be a major cost. Just like we see in other exchange platforms like IEX, operating margins post the shift have taken a big upswing and shall go to about ~60%. This shall mean a significant jump in its profitability.
Commodity futures revenue has been declining at the rate of 14% yearly since FY21 whereas commodity options revenue has been growing at a rapid pace (4.4x in FY23). MCX revenue (fees) as a percentage of the premium in Options is about 15 times that in Futures contracts. Thus the loss of revenue in the futures segment is more than compensated by the growth in the Options segment. Going ahead we expect options revenues to grow at a healthy pace of 51% CAGR over FY23-26F.
As MCX was maneuvering the regulatory concerns over its new trading platform, its better-known rivals NSE and BSE, despite their relatively minuscule market share have come up with commodity options. BSE is playing a low-cost strategy to lure traders, which is why it is gaining market share. However, the segment itself is growing at a fast pace and thus more than one player can co-exist. It is to be seen if MCX can hold the market share in this segment as it has in the Futures segment.
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Income | 341 | 352 | 376 | 352 | 406 | 503 | 533 | 433 | 576 | 758 |
| Interest Income | 222 | 235 | 259 | 260 | 300 | 398 | 391 | 367 | 514 | 684 |
| Other Income ⓘ | 118 | 117 | 117 | 92 | 106 | 105 | 142 | 66 | 63 | 74 |
| Expenditure ⓘ | 170 | 185 | 199 | 205 | 228 | 238 | 266 | 229 | 386 | 656 |
| Interest Expense ⓘ | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Expenses ⓘ | 161 | 177 | 192 | 196 | 208 | 221 | 214 | 216 | 371 | 614 |
| Provisions | 7 | 8 | 7 | 8 | 20 | 16 | 52 | 12 | 15 | 41 |
| Exceptional Items ⓘ | 0 | -6 | 0 | 0 | -24 | 0 | 0 | -20 | 0 | 0 |
| Profit Before Tax ⓘ | 170 | 162 | 178 | 147 | 154 | 265 | 267 | 184 | 191 | 102 |
| Taxes ⓘ | 45 | 47 | 51 | 39 | 7 | 29 | 42 | 41 | 42 | 19 |
| Profit After Tax | 125 | 115 | 127 | 108 | 146 | 237 | 225 | 143 | 149 | 83 |
| Adjusted EPS (₹) | 24.7 | 22.5 | 24.8 | 21.3 | 28.7 | 46.4 | 44.2 | 28.1 | 29.2 | 16.3 |
| Dividend Payout Ratio (%) | 41% | 29% | 60% | 80% | 70% | 65% | 63% | 62% | 65% | 47% |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
Equity and Liabilities | ||||||||||
| Equity Capital | 1,392 | 1,482 | 1,533 | 1,561 | 1,581 | 1,769 | 1,887 | 1,944 | 2,069 | 2,159 |
| Share Capital ⓘ | 51 | 51 | 51 | 51 | 51 | 51 | 51 | 51 | 51 | 51 |
| Reserves ⓘ | 1,341 | 1,431 | 1,482 | 1,510 | 1,530 | 1,718 | 1,836 | 1,893 | 2,018 | 2,108 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Long Term Borrowings | 606 | 639 | 712 | 735 | 781 | 814 | 809 | 802 | 847 | 921 |
| Current Liabilities | 442 | 401 | 332 | 405 | 456 | 939 | 587 | 818 | 938 | 1,184 |
| Trade Payables | 10 | 19 | 30 | 42 | 33 | 31 | 20 | 26 | 21 | 62 |
| Short term borrowings | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Liabilities | -10 | -19 | -30 | -42 | -33 | -31 | -20 | -26 | -21 | -62 |
| Total Liabilities ⓘ | 2,440 | 2,522 | 2,577 | 2,701 | 2,818 | 3,523 | 3,284 | 3,564 | 3,855 | 4,264 |
Assets | ||||||||||
| Non Current Asset | 762 | 1,044 | 1,667 | 1,624 | 1,598 | 1,992 | 2,126 | 1,714 | 2,188 | 2,814 |
| Loan Asset | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non Current Asset ⓘ | 762 | 1,044 | 1,667 | 1,624 | 1,598 | 1,992 | 2,126 | 1,714 | 2,188 | 2,814 |
| Current Asset | 1,677 | 1,479 | 910 | 1,076 | 1,220 | 1,531 | 1,157 | 1,850 | 1,667 | 1,450 |
| Current Investment | 1,288 | 864 | 763 | 900 | 582 | 662 | 598 | 713 | 202 | 311 |
| Other Current Asset | 389 | 615 | 147 | 177 | 638 | 869 | 559 | 1,136 | 1,464 | 1,139 |
| Total Assets ⓘ | 2,440 | 2,522 | 2,577 | 2,701 | 2,818 | 3,523 | 3,284 | 3,564 | 3,855 | 4,264 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash Flow From Operating Activity ⓘ | 70 | 78 | -32 | 99 | 258 | 449 | -184 | 391 | 141 | 521 |
| Cash Flow From Investing Activity ⓘ | -68 | -30 | 55 | 36 | -93 | -27 | -39 | -142 | -8 | -424 |
| Cash Flow From Financing Activity ⓘ | -19 | -61 | -40 | -92 | -105 | -123 | -154 | -142 | -89 | -98 |
| Net Cash Flow ⓘ | -18 | -14 | -17 | 43 | 61 | 299 | -377 | 107 | 44 | -2 |
| PARTICULARS | Mar'15 | Mar'16 | Mar'17 | Mar'18 | Mar'19 | Mar'20 | Mar'21 | Mar'22 | Mar'23 | Mar'24 |
|---|---|---|---|---|---|---|---|---|---|---|
Operational & Financial Ratios |
||||||||||
| EPS (₹) | 25 | 22 | 25 | 21 | 29 | 46 | 44 | 28 | 29 | 16 |
| DPS (₹) | 10 | 7 | 15 | 17 | 20 | 30 | 28 | 17 | 19 | 8 |
| BVPS (₹) | 273 | 290 | 300 | 305 | 310 | 347 | 370 | 381 | 406 | 423 |
Performance Ratios | ||||||||||
| ROA (%) | 5.3 | 4.6 | 5.0 | 4.1 | 5.3 | 7.5 | 6.6 | 4.2 | 4.0 | 2.1 |
| ROE (%) | 9.3 | 8.0 | 8.4 | 7.0 | 9.3 | 14.1 | 12.3 | 7.5 | 7.4 | 3.9 |
| ROCE (%) | 12.7 | 11.3 | 11.8 | 9.5 | 9.8 | 15.9 | 14.6 | 9.6 | 9.5 | 4.8 |
Valuation Parameters | ||||||||||
| Price/Book(x) | 4.1 | 2.9 | 4.0 | 2.2 | 2.6 | 3.3 | 4.1 | 3.7 | 3.7 | 7.9 |
The Multi Commodity Exchange of India Limited (MCX), India’s first listed exchange, is a state-of-the-art, commodity derivatives exchange that facilitates online trading of commodity derivatives transactions, thereby providing a platform for price discovery and risk management. The Exchange, which started operations in November 2003, operates under the regulatory framework of Securities and Exchange Board of India (SEBI).
Business area of the company
MCX offers trading in commodity derivative contracts across varied segments including bullion, industrial metals, energy and agricultural commodities, as also on indices constituted from these contracts. It is India’s first Exchange to offer commodity options contracts, bullion index futures and base metals index futures contracts. The Exchange focuses on providing commodity value chain participants with neutral, secure and transparent trade mechanisms, and formulates quality parameters and trade regulations, in conformity with the regulatory framework.
Products
MCX provides exposure to the performance of a basket of commodities
MCX iCOMDEX
Bullion
Base Metals
Energy
Agri Commodities
Awards
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Milestones
MoneyWorks4Me rating and ranking of funds for SIP is available to subscribers only. Moneyworks4Me is not a rating and ranking agency, however it is required that users have a way of selecting funds and building a Portfolio. The method used by it are described below to enable users to understand the logic behind the rating and ranking Subscriber will find more details on this in the various content made available from time to time. In case you need more please write to besafe@moneyworks4Me.com
MoneyWorks4Me rates and ranks mutual funds based on the following data-driven system:
Funds ranking in screeners: Performance Consistency and Quality are two parameters used for ranking funds for SIP. The ranking as follows GG, GO, GR, OG, OO, OR, RG, RO and RR.
With the same color-coded funds, the one with the higher Average 3-year rolling returns (over 5 to 10 years), the number that appears in the Performance tag, ranks higher.
Here is the summary:
The third tag Upside Potential is not relevant for SIP. It is relevant for lumpsum investments in Mutual Funds.
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