Neutral MCX; target of Rs 1450: Motilal Oswal

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Motilal Oswal's research report on MCX

MCX’s net profit grew 13% YoY (8% below our estimate) but declined 40% QoQ to INR388m in 3QFY23, led by higher-than-expected software costs and other expenses. Overall volumes rose 89% YoY/13% QoQ to INR40.7t. Revenue stood at INR1,436m in 3Q. Both volumes and overall revenue were in line with estimates. Futures volumes at INR15.5t dropped 3% YoY but were flat QoQ in 3QFY23, while Options volumes spiked 24% sequentially at INR25.2t. Software expenses were at INR676m v/s our expectation of INR600m and were 4.2x/3.1x when compared with the 3QFY22/2QFY23 numbers. This surge has been led by increased payout for extending the contract with 63 moons wherein the payout was charged at INR600m (plus taxes) for 3QFY23. The contract has been extended until 1QFY24 and the agreed charges are at INR810m (plus taxes), higher than our estimates.

Outlook

We value the stock at a multiple of 24xFY25E EPS to arrive at our revised TP of INR1,450 (v/s INR1,800 earlier) resulting in a 2% upside. We downgrade our rating to Neutral.

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.

MCX - 08 -02 - 2023 - moti