Buy MCX; target of Rs 1302: Axis Direct
Axis Direct is bullish on MCX has recommended buy rating on the stock with a target price of Rs 1302 in its research report dated July 19, 2017.
July 20, 2017 / 04:07 PM IST
Axis Direct's report on MCX
Revenue declined ~1% QoQ to Rs 868 mn due to lower traded value (down 3.4% QoQ) in bullion (GST uncertainty) and base metals. The quarter saw a deceleration in the decline in gold volumes – down 3.5% QoQ vs. 11% QoQ in Q4. EBITDA margin (post float income) expanded 380 bps QoQ, driven by cost reduction in the operating expenses. PAT was up 18% QoQ at Rs 263 mn on lower tax outgo.
Update on regulatory developments and new products: Management expects to launch options in the second half of August 2017. CBDT clarification on CTT/ STT is awaited. SEBI has allowed Cat III Alternative Investment Funds to participate in commodities, which should boost volumes. Following this, management expects Portfolio Management Services and Mutual Funds to be permitted.
For all recommendations report, click hereDisclaimer:
The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.