Motilal Oswal Financial Services neutral on Multi Commodity Exchange of India, target price: Rs 1450

Motilal Oswal Financial Services has neutral call on Multi Commodity Exchange of India with a target price of Rs 1450. The current market price of Multi Commodity Exchange of India is Rs 1497.

Multi Commodity Exchange of India, incorporated in the year 2002, is a Mid Cap company (having a market cap of Rs 7581.42 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 31-12-2022, the company has reported a Consolidated Total Income of Rs 163.65 Crore, up 12.37 % from last quarter Total Income of Rs 145.64 Crore and up 57.27 % from last year same quarter Total Income of Rs 104.06 Crore. Company has reported net profit after tax of Rs 39.49 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 31-12-2022, the company has a total of 5 Crore shares outstanding.

Investment Rationale
The software migration issue is a near-term barrier for MCX. In the long term, the brokerage believes volumes for MCX should increase as FPIs participate in Indian commodity derivatives. Volumes have been scaling up, driven by an uptrend in option volumes and recommencement of mini contracts.