MCX Q4 Results Review - Weak Revenue Led To A 5% PAT Miss; Cost Broadly Inline: Motilal Oswal

Motilal Oswal Report

Multi Commodity Exchange Of India Ltd. reported profit after tax of Rs 878 million, 5% lower than our estimates of Rs 923 million. Total revenue came in at Rs 1.8 billion, up 35% YoY (~13.4% miss).

The miss was due to lower non-transaction revenues and lower-than-expected premium to notional turnover in the options segment.

Overall volumes improved significantly, rising by 97% YoY to Rs 83 trillion. Futures volumes came in at Rs 11.1 trillion, down 15% YoY and 16% QoQ. Option volumes jumped 148% YoY and 18% QoQ to Rs 71.6 trillion.

For FY24, revenue increased 33% YoY to Rs 6.8 billion and PAT declined 44% YoY to Rs 831 million.

We have raised our FY25 and FY26 earnings per share estimates to factor in a stronger volume trajectory and anticipated new product launches. We reiterate our Buy rating with a one-year target price of Rs 4,400 (premised on 38 times FY26E EPS).

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