Motilal Oswal's research report on MCX
4QFY17 revenue from operations grew 3.2% YoY to INR 574m (in-line). Volumes fell 16.5% YoY, led mainly by bullion (gold down by 51% and silver by 26%) in the aftermath of demonetization. Average daily turnover in 4Q was INR 199b. However, average realization rose 18% YoY after pricing hike taken by MCX (effective 1 October 2016).
Outlook
This drives our expectation of healthier revenue growth in FY19 (31%) and consequently driving earnings growth (40%). Our price target of INR 1,325 discounts FY19E earnings by 30x, implying 15% upside. Maintain Buy.
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