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Last Updated : Jan 16, 2019 01:48 PM IST | Source: Moneycontrol.com

Buy MCX; target of Rs 900: Motilal Oswal

Motilal Oswal is bullish on MCX has recommended buy rating on the stock with a target price of Rs 900 in its research report dated January 15, 2019.

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Motilal Oswal's research report on MCX


Revenue grew 26% YoY to INR769m, in line with our estimate of INR766m. Futures volumes grew 34% YoY (+8% QoQ) to INR17t, dominated by crude (+78% YoY) and gold (+53% YoY). EBITDA margin of 27.2% (+500bp YoY, -500bp QoQ) was below our estimate of 34% due to higher other expenses (INR45m one-off). Excluding this one-time expense, the margin stood at 33.1% (90bp lower than our estimate). PAT growth of 124% YoY (to INR420m) exceeded our estimate of 68.5% YoY owing to higher other income (INR322m v/s our estimate of INR199m) and a lower tax rate (15.3% v/s our estimate of 24%), which emanated from some provisions and deferred tax. For 9MFY19, revenue/EBITDA/PAT were up 17.9%/47%/42% YoY.


Outlook


Our price target of INR900 discounts forward earnings by 25x and implies 18% upside. Maintain Buy.


For all recommendations report, click here


Disclaimer: 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.




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First Published on Jan 16, 2019 01:48 pm
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