Buy MCX; target of Rs 4850: Motilal Oswal

Motilal Oswal's research report on MCX

MCX reported PAT of INR1.1b (5% miss) in 1QFY25, up 4.6x YoY and 26% QoQ. Excluding the voluntary contribution to core SGF, overall profitability was in line with our estimate. Total revenue came in at INR2.3b (4% beat), up 60.8% YoY and 29.4% QoQ. Total volumes increased significantly by 116.8% YoY to INR112.3t. Futures volumes stood at INR16.9t, up 27% YoY and 53% QoQ. Option volumes jumped 148% YoY and 33% QoQ to INR95.4t. We cut our FY25 EPS estimate by 12% owing to a higher SGF contribution, but we broadly maintain our FY26 EPS estimate. We reiterate our BUY rating with a one-year TP of INR4,850 (premised on 40x FY26E EPS).

Outlook

We cut our FY25 EPS estimate by 12% owing to a higher SGF contribution, but we broadly maintain our FY26 EPS estimate. We reiterate our BUY rating with a one-year TP of INR4,850 (premised on 40x FY26E EPS).