Subscribe to MCX IPO: Emkay
Emkay Global Financial Services has come out with its report on Multi Commodity Exchange of India Ltd (MCX) IPO.
February 23, 2012 / 18:23 IST
Emkay Global Financial Services has come out with its report on Multi Commodity Exchange of India Ltd (MCX) IPO.
MCX is a dominant player with 88% market share in the Indian commodities market. It enjoys virtual leadership in silver, gold, copper, natural gas and crude oil globally. Product innovation with strong infrastructure - key to sustainable growth. Approval towards Options trading and opening windows for FII/DII and banks to propel volumes. Impressive traded value at 47% CAGR translated into 32% revenue CAGR and 51% APAT over FY09-FY11. EBIDTA margins at 60%+ (9MFY12) due to higher operating leverage. Scalable model, ability to generate sustainable free cash flows, healthy return ratios and reasonable valuations provide room for decent upside.MCX is a market leader in the commodity exchange business with 87.5% market share and significant presence across key commodities like gold, silver, copper, crude oil, etc, which gives it competitive edge in a rapidly growing market. Robust technological infrastructure and trading platform, varied product offering, strong alliances, growing market presence and healthy operational performance has enabled MCX to clock 38% CAGR in traded volumes to 213 mn contracts and subsequently, 37% CAGR in transaction fees to Rs 3.5bn and 32% CAGR in revenues to Rs 3.7bn over FY09-FY11. Going forward, continued presence in key global commodities, product innovation, relaxed norms towards options trading and inclusion of FII/DII and Banks to commodity trading would ensure sustained domination of MCX.We are enthused by MCX
Read More
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
