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Multi Commodity Exchange Of India Ltd. Stock Analysis

Mid Cap
Evaluated by 2844 users | BSE: 534091 | NSE: MCX |
Finance - Stock Broking
Multi Commodity Exchange of India is the leading commodities exchange in India based on value of commodity futures contracts traded. They are a de-mutualised exchange and received permanent recognition from the Government of India on September 26, 2003, to facilitate nationwide online trading,...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Multi Commodity Exchange Of India Ltd. has performed well in majority of the past ten years indicating its past ten year financial track record is very good
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Operating Income (Rs. Cr.)369545524341222235259260298370
Y-o-Y Gr. Rt.-47.8%-3.9%-35%-34.7%5.6%10.4%0.2%14.8%24.2%
Adjusted EPS (Rs.)
Adjusted Earning per Share is the company’s net profit per share after adjusting for extra-ordinary/exceptional items
34.3356.3758.5629.9524.5222.3124.7620.8526.7640.89
Y-o-Y Gr. Rt.-64.2%3.9%-48.9%-18.1%-9%11%-15.8%28.4%52.8%
Book Value per Share (Rs.)
The total value that a company will fetch upon liquidation (if it is closed down), after settling all obligations is called its Book Value. Book value of a company includes only tangible assets. Book value allocated to each outstanding share is called Book Value per share
170.08196.37226.82258.06272.42252.9266.43305.27286.83303.24
Y-o-Y Gr. Rt.-15.5%15.5%13.8%5.6%-7.2%5.4%14.6%-6%5.7%
To view Net Profit/Total Funds (%) Colour Rating Guide click here
Net Profit/Total Funds (%): Colour Rating Guide
  • >12 : Very Good
  • 8-12 : Somewhat Good
  • <8: Not Good
Net Profit/Total Funds (%)12.6715.1913.156.695.294.594.964.045.48.5
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Multi Commodity Exchange Of India Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Operating Income0.1%10.7%12.6%24.2%
Adjusted EPS
Adjusted Earnings per Share is the Company’s net profit per share after adjusting for extra-ordinary/exceptional items.
2%10.8%18.2%52.8%
Book Value per Share
6.6%2.2%4.4%5.7%
Share Price - 14.7% 19.7% 58.7%
Key Financial Ratios
RATIOS \ YEARSMar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Margins
Net Profit Margin (%) 46.8552.55744.8456.2148.4348.6740.9345.7556.29
Performance Ratios
To view Performance Ratios Colour Rating Guide click here
Performance Ratios: Colour Rating Guide
  • >15 : Very Good
  • 12-15 : Somewhat Good
  • <12 : Not Good
Return on Equity (%) 22.2530.8927.7312.359.248.499.547.39.0413.86
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Institutions 77.98%
Non-Institutions 22.02%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Multi Commodity Exchange Of India Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that Multi Commodity Exchange Of India Ltd. is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Multi Commodity Exchange Of India Ltd.'s performance infers:

Multi Commodity Exchange Of India Ltd. earnings have grown by 10.8%, whereas share price has appreciated 14.7% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

Data is not available for this company

Multi Commodity Exchange of India is the leading commodities exchange in India based on value of commodity futures contracts traded. They are a de-mutualised exchange and received permanent recognition from the Government of India on September 26, 2003, to facilitate nationwide online trading, clearing and settlement operations of commodities futures transactions. The total value of commodity futures contracts traded on its Exchange in the nine months ended December 31, 2010

Multi Commodity Exchange of India is the leading commodities exchange in India based on value of commodity futures contracts traded. They are a de-mutualised exchange and received permanent recognition from the Government of India on September 26, 2003, to facilitate nationwide online trading, clearing and settlement operations of commodities futures transactions. The total value of commodity futures contracts traded on its Exchange in the nine months ended December 31, 2010 and the fiscals 2010, 2009 and 2008 was Rs 68,893.18 billion, Rs 63,933.03 billion, Rs 45,880.95 billion and Rs 31,259.59 billion, respectively. According to data maintained by the FMC, these amounts represented 83.3%, 82.3%, 87.4% and 76.9% of the Indian commodity futures industry in terms of the value of commodity futures contracts traded during those periods. A majority of the commodities they offer are significant in the Indian and global context and are also traded on international exchanges. As of December 31, 2010, they offered trading in 43 commodity futures based on contract specifications, from a diverse range of classes including bullion, ferrous and non-ferrous metals, energy, weather and agriculture. The same underlying physical asset traded under different contract specifications is regarded as a separate commodity future. For example, Gold, Gold Mini and Gold Guinea, all of which are gold futures contracts, are treated as three different commodities in deriving the total number of commodity futures traded on their Exchange. As of December 31, 2010, they had 2,107 members on their Exchange’s platform, with over 180,000 terminals including CTCL spread over 1,139 cities and towns across India.

They were the first national commodity futures exchange in India to offer futures trading in steel, crude oil and several other commodities, including carbon credits. In May 2009, they launched their almond futures. In December 2009, they launched the exchange of futures for physicals (EFP) facility for the first time in India. In May 2010 and June 2010, they launched their zinc mini futures and lead mini futures contracts, which offer trading in these metals in smaller lot sizes. In January 2011, they also launched iron ore future contracts and in February 2011, they launched silver micro and aluminium mini contracts, which offer trading in these metals in smaller lot sizes. They were the first exchange in India to initiate evening sessions to synchronise with the trading hours of global exchanges in London, New York and other major international markets to meet the needs of the physical markets that operate in such time zones. Their operations are sustained by the exchange related support infrastructure and software that they have or sourced from their Promoter, FTIL. Their technology infrastructure includes central matching engines, high end Intel servers, channel based storage area network and networking equipment for providing secured connectivity through very small aperture terminals (VSATs), virtual private networks (VPN), lease lines and the internet. They have been certified under ISO 9001:2008 for quality management standards and ISO 14001:2004 for environmental management systems with respect to developing and providing services for online trading, clearing and settlement facilities, and risk monitoring of commercial derivatives market. They have also achieved the ISO/IEC 27001:2005 certification, which is the global benchmark for information security management systems.

They offer market data and information services to third parties in relation to the commodity futures contracts traded on their Exchange for direct and indirect dissemination to market participants. They have entered into agreements with several financial information service agencies, including Bloomberg Finance L.P., IQN Data Solutions Private Limited, Interactive Data (Europe) Limited, NewsWire 18 Private Limited, TickerPlant Limited and Reuters India Private Limited to provide real time data-feed on trading prices, trading volume and other information on the commodity futures contracts which are traded on their Exchange and similar information on commodities traded on the spot markets. As part of their efforts to promote more extensive participation in the Indian commodities market, they have focused on disseminating information, providing training and educational programs to increase awareness of the Indian commodities industry to market participants. They have entered into arrangements with a number of educational institutions and commodities trade organizations to educate existing and potential market participants on the dynamics of the commodities market, provide management development programs for decision makers and industry leaders in the Indian commodities markets and provide training and certification programs relating to the Indian commodities market. They have relationships with, among other institutions, Department of Economics (Autonomous) University of Mumbai, FT Knowledge Management Company Limited, Symbiosis Institute of International Business, Takshashila Academia of Economic Research Limited and NCUI NCCT - VAMNICOM. In addition, they have entered into agreements with National Bulk Handling Corporation Limited (NBHC) for the provision of services in connection with warehousing and the physical deliveries for settlement of futures contracts traded on their Exchange.

 

Subsidiaries:

MCXCCL - Multi Commodity Exchange Clearing Corporation (MCXCCL) was incorporated on August 1, 2008 under the Companies Act. MCXCCL’s main business is, to facilitate, set up and carry on the business of clearing and settlement of commodity and commodity derivatives and other commodities and instruments of all kinds and to initiate, facilitate, promote, assist, undertake and manage all activities in relation to commodity exchanges, commodity derivatives exchanges, commodity markets, securities, currencies, warehouse, custodial and depository services.

SME - SME Exchange of India (SME) was incorporated on September 14, 2010 under the Companies Act. SME’s main business is to establish, operate, maintain and manage facilities in India and abroad enabling the members, their authorised agents and constituents and other participants to transact, clear and settle trades done on all the segments especially for small and medium enterprises segment, in cash, spot, ready, swaps, forward, futures and options markets for providing accessibility to the markets and support services to various members.

Milestones:

  • May 28, 2002 - The company was converted into a public limited company and the company’s name was changed to Multi Commodity Exchange of India
  • September 26, 2003 - The company received permanent recognition from the Ministry of Consumer Affairs, Food and Public Distribution, Government of India
  • November 10, 2003 - First day of trading for the company
  • December 8, 2003 - Online futures trading during evening session and through Internet trading facilities was pioneered
  • November 29, 2004 - MoU entered into between FTIL and NAFED to create a national level agricultural spot exchange.
  • June 7, 2005 - Launch of composite commodity futures index (MCX-COMDEX) by the company
  • June 14, 2005 - ‘Commodity Suchana Kendra’, a joint initiative between the company, Maharashtra State Agricultural Marketing Board (MSAMB) and NSEAP to link up all Agriculture Produce Market Committee (APMC) markets, was launched at the Agriculture Produce Market Committee, Navi Mumbai.
  • October 25, 2005 - The company entered into a license agreement with London Metal Exchange(LME) for the use of the LME’s official prices as the basis for settlement of certain futures contracts
  • December 1, 2005 - The company entered into a MoU with the University of Mumbai for creating a chair in its department of economics
  • June 5, 2006 - The company signed a license agreement with NYMEX
  • June 12, 2006 - The company teamed up with the Department of Posts, Government of India, to launch Gramin Suvidha Kendra in Jalgaon, Maharashtra, for information dissemination and query redressal on agricultural issues to farmers using the Indian postal network.
  • July 24, 2006 - The company signed an agreement with Euronext.LIFFE
  • May 23, 2007 - The company obtained ISO/IEC 27001: 2005 certification
  • June 3, 2008 - The company was granted membership to the International Organization of Securities Commissions (IOSCO).
  • June 9, 2008 - Launch of futures in CER (Certified Emission Reduction) by the company
  • July 18, 2008 - Launch of the Gujarati and Hindi version of website mcxindia.com by the company
  • October 14, 2009 - The company released India’s first Yearbook on Indian Commodity Ecosystem in collaboration with PricewaterhouseCoopers
  • November 30, 2009 - The company launched “Exchange of Futures for Physicals” (EFP) transactions
  • December 3, 2009 - The company is the sixth largest commodity futures exchange globally in terms of the number of contracts traded on the exchange for the period January to June 2009.
  • June 7, 2010 - The company signed an MoU with Shanghai Futures Exchange
  • October 20, 2010 - The company obtains renewal of its ISO 9001:2008 certification from Bureau Veritas Certification (India)
  • 2010
    India’s first exchange to report its sustainability performance since FY 2009-10.
    Received the “Best Commodity Exchange of the Year” award from the Bombay Bullion Association
    Conferred with the FICCI Socio Economic Development Foundation (SEDF) Corporate Social Responsibility Award 2009-10
    Received the NASSCOM Foundation Social Innovation Honours 2010
  • 2011
    Conferred with the Best Commodity Exchange of the year award by the Bombay Bullion Association at the 8th India International Gold Conventions, held at Kochi
    Won the Indy’s award under the category ‘Best in Corporate Social Responsibility practices’
    Conferred with the “Financial Inclusion Award 2011” from the SKOCH Foundation
  • 2012
    World’s 3rd largest commodity futures exchange in terms of the numbers of contracts traded in CY2012*
    Became India’s first listed exchange on March 9, 2012

Awards and recognitions:

  • 2008 - The company was awarded the “Golden Peacock Eco-innovation award 2008” by the Institute of Directors
  • 2008 - The company was recognized as “India’s First Green Exchange” by Priyadarshini Academy
  • 2008 - The company received the “Best Bullion Exchange of the Year” award from the Bombay Bullion Association
  • 2009 - The company received the “Sankalp Award” for Agriculture and Rural Innovation
  • 2010 - The company received the NASSCOM Foundation Social Innovation Honours 2010
  • 2010 - The company received the FICCI Socio Economic Development Foundation (SEDF) Corporate Social Responsibility Award 2009-10
  • 2010 - The company received the “Best Commodity Exchange of the Year” award from the Bombay Bullion Association
  • 2011 - The company received the “Financial Inclusion Award 2011” from the SKOCH Foundation
  • 2012- FinanceAsia awards MCX IPO as the ‘Best Mid-cap Equity Deal’ in the entire Asia-Pacific for 2012; 1st exchange in the Asia Pacific to receive this recognition
    MCX’s Gold Petal contract received the FOW award for ‘the most innovative contract launch by an exchange’ under the metals category
    Conferred with the Best Commodity Exchange of the year award by the Bombay Bullion Association at the 9th India International Gold Conventions, held at Hyderabad
    Conferred with the Business Superbrand award
  • 2013 - The ‘Best Commodity Exchange of the year’ award by Global Cotton Conference
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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