Buy MCX; target of Rs 1300: Motilal Oswal
Motilal Oswal is bullish on MCX has recommended buy rating on the stock with a target price of Rs 1300 in its research report dated June 13, 2017.
Motilal Oswal's research report on MCX
The underlying asset for the option would be commodity futures contract of a specified month in which the option will devolve into. Options would be European style, and the expiry day shall be decided by the exchange. Position limits are at the same levels as prescribed in earlier circulars.
From 2QFY18, options will also be launched, a key trigger for volumes. This should kick-start the recovery in volumes, which should continue with the entry of new participants such as FIs and new products such as indices. This drives our expectation of healthier revenue growth in FY19 (31%) and consequently driving earnings growth (40%). Our price target of INR 1,300 discounts FY19E earnings by 30x, implying 24% upside. Buy.
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