Share price of this monopoly stock moved down by 7.7 percent on BSE, hitting an intraday low at Rs. 3,715.15 in the morning trading session of Wednesday after reporting mixed Q4 FY23-24 results.
With a market capitalisation of Rs. 19,256.5 crore, at 12:21 p.m. the shares of Multi Commodity Exchange Of India Limited were trading in the red at Rs. 3,810, down by 5.27 percent on the NSE.
The fluctuations in the share prices were observed after the company announced its financial results on Tuesday for Q4 FY23-24 and FY24, through the recent filings with the stock exchanges.
The revenue from operations increased by 33.07 percent to Rs. 684 crores in FY24 from Rs. 514 crore in FY23, however, it decreased by 5.7 percent from Rs. 192 crore in Q3 FY23-24 to Rs. 181 crore in Q4 FY23-24.
Despite reporting a rise in net profit to Rs. 88 crore in Q4 FY23–24, following consecutive losses in the last two quarters, MCX witnessed a 44.3 percent decline in net profit from Rs. 149 crore in FY23 to Rs. 83 crore in FY24.
Further, the Board of the company declared a final dividend of Rs. 7.64 per equity share for FY23-24, as per the regulatory filing.
With a target price of Rs. 2,085, the global brokerage firm Morgan Stanley maintained its “underweight” rating on MCX, representing a downside of nearly 46 percent from the current trading price of Rs. 3,810.
The brokerage highlighted that the operating revenue came in below projections and the company significantly missed its Q4 net profit estimate and consensus.
As of March 2024, FIIs hold 23.22 percent of the shares, whereas DIIs hold 56.86 percent of the shares in the company, aggregating to 80.08 percent of the institutional holdings.
JP Morgan Funds and HSBC Global Investment Funds hold a 1.13 percent and 1.51 percent of stake in the company, respectively.
The company has delivered about 161 percent of multibagger returns in the last one year and nearly 71.2 percent of positive returns in the last six months. So far in 2024, it has given positive returns of around 20.4 percent.
Multi Commodity Exchange Of India Limited (MCX) offers online trading in commodity derivatives transactions across varied segments including bullion, industrial metals, energy and agricultural commodities, as well as on indices constituted from these contracts.
It is India’s first listed exchange to introduce commodity options, and futures contracts on bullion, base metals and energy indices.
The company controls more than 95.3 percent of the market share in commodity Futures turnover and around 99.72 percent in commodity Options. It holds a monopoly on the trading of precious metals, energy, and base metals.
Written by Shivani Singh
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