Buy MCX; target of Rs 875: Motilal Oswal

Motilal Oswal is bullish on MCX has recommended buy rating on the stock with a target price of Rs 875 in its research report dated October 23, 2018.

Broker Research

October 24, 2018 / 15:59 IST

26 Aug, 2025 12:21

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Motilal Oswal 's research report on MCX

Revenue increased 5.7% YoY to INR711m (2% below our estimate of INR726m) in 2QFY19. Lower-than-estimated revenues in the case of MCX are explained by either realization (mix of high- and low-volume orders) or by contribution of non-transaction revenues. EBITDA margin of 32.2% missed our estimate of 38%, led by [1] lower revenues and [2] higher Software expenses (INR145m v/s estimate of INR115m). PAT increased 23.3% YoY to INR359m (7.6% beat) owing to a lower tax rate (13% v/s 25%), which emanated from some excess provisions written back and deferred tax.

Outlook

However, owing to the early developments and staying cognizant of the potential turn of events going forward, we are revising our target multiple for MCX to 25x (from 30x earlier). Our revised TP of INR875 implies an upside of 18%. Maintain Buy.

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