NSEI:MCX

Stock Analysis Report

Multi Commodity Exchange of India

Executive Summary

Multi Commodity Exchange of India Limited operates as a commodity derivatives exchange in India.


Snowflake Analysis

Solid track record second-rate dividend payer.


Similar Companies

Share Price & News

How has Multi Commodity Exchange of India's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MCX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.7%

MCX

-0.3%

IN Capital Markets

-3.9%

IN Market


1 Year Return

27.3%

MCX

-39.6%

IN Capital Markets

-32.2%

IN Market

Return vs Industry: MCX exceeded the Indian Capital Markets industry which returned -38.3% over the past year.

Return vs Market: MCX exceeded the Indian Market which returned -30.7% over the past year.


Shareholder returns

MCXIndustryMarket
7 Day-4.7%-0.3%-3.9%
30 Day-24.1%-33.4%-26.8%
90 Day-20.3%-35.8%-31.7%
1 Year29.9%27.3%-38.4%-39.6%-30.8%-32.2%
3 Year-14.6%-19.2%-45.7%-47.9%-19.5%-23.8%
5 Year-8.2%-14.5%-29.8%-34.6%-10.0%-14.9%

Price Volatility Vs. Market

How volatile is Multi Commodity Exchange of India's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Multi Commodity Exchange of India undervalued compared to its fair value and its price relative to the market?

21.64x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MCX (₹986.9) is trading above our estimate of fair value (₹484.41)

Significantly Below Fair Value: MCX is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MCX is poor value based on its PE Ratio (21.6x) compared to the Capital Markets industry average (9.2x).

PE vs Market: MCX is poor value based on its PE Ratio (21.6x) compared to the Indian market (9.4x).


Price to Earnings Growth Ratio

PEG Ratio: MCX is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: MCX is overvalued based on its PB Ratio (3.1x) compared to the IN Capital Markets industry average (0.4x).


Next Steps

Future Growth

How is Multi Commodity Exchange of India forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MCX's forecast earnings growth (9% per year) is above the savings rate (6.5%).

Earnings vs Market: MCX's earnings (9% per year) are forecast to grow slower than the Indian market (19.2% per year).

High Growth Earnings: MCX's earnings are forecast to grow, but not significantly.

Revenue vs Market: MCX's revenue (9.8% per year) is forecast to grow faster than the Indian market (8.8% per year).

High Growth Revenue: MCX's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MCX's Return on Equity is forecast to be low in 3 years time (18%).


Next Steps

Past Performance

How has Multi Commodity Exchange of India performed over the past 5 years?

13.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MCX has high quality earnings.

Growing Profit Margin: MCX's current net profit margins (48.8%) are higher than last year (31.1%).


Past Earnings Growth Analysis

Earnings Trend: MCX's earnings have grown by 13.6% per year over the past 5 years.

Accelerating Growth: MCX's earnings growth over the past year (94.3%) exceeds its 5-year average (13.6% per year).

Earnings vs Industry: MCX earnings growth over the past year (94.3%) exceeded the Capital Markets industry -6.1%.


Return on Equity

High ROE: MCX's Return on Equity (14.3%) is considered low.


Next Steps

Financial Health

How is Multi Commodity Exchange of India's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MCX has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if MCX's debt is covered by short term assets.


Financial Institutions Analysis

Asset Level: MCX's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if MCX has a sufficient allowance for bad loans.

Low Risk Liabilities: MCX reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MCX has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MCX has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MCX has an appropriate level of bad loans.


Next Steps

Dividend

What is Multi Commodity Exchange of India's current dividend yield, its reliability and sustainability?

2.03%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MCX's dividend (2.03%) is higher than the bottom 25% of dividend payers in the Indian market (0.95%).

High Dividend: MCX's dividend (2.03%) is low compared to the top 25% of dividend payers in the Indian market (4.06%).


Stability and Growth of Payments

Stable Dividend: MCX has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: MCX has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.9%), MCX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MCX's dividends in 3 years are forecast to be covered by earnings (63.9% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Padala Reddy (56yo)

0.92

Tenure

Mr. Padala Subbi Reddy has been the Chief Executive Officer, Managing Director and Additional Director of Multi Commodity Exchange of India Limited since May 10, 2019. Mr. Reddy is a Managing Director & Ch ...


Leadership Team

NamePositionTenureCompensationOwnership
Pareshnath Paul
Chief Information Officer1.17yrsno datano data
Ajay Puri
Company Secretary & Compliance Officer1.33yrs₹6.53m0.000020% 10.1k
Padala Reddy
MD, CEO & Additional Director0.92yrno datano data
Sunil Kurup
Vice President of Technology1.25yrsno datano data
Rajendra Gogate
Head of Human Resources & Admin3.25yrsno datano data
Rishi Nathany
Head of Business Development & Marketing1.75yrsno datano data
Venkatachalam Shunmugam
Head of Research3.25yrsno datano data
Chittaranjan Rege
Head of Base Metals3.5yrsno datano data
Dalvani Praveen
Head of Corporate Office & Projects and Risk Officer2yrsno datano data
Narendra Ahlawat
Chief Regulatory Officerno data₹9.39mno data

1.8yrs

Average Tenure

50yo

Average Age

Experienced Management: MCX's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Padala Reddy
MD, CEO & Additional Director0.92yrno datano data
Chengalath Jayaram
Shareholder Director3.42yrs₹1.66mno data
Lawrence Leibowtiz
Member of Advisory Board11.08yrsno datano data
Anup Banerjee
Member of the Advisory Boardno datano datano data
Deepali Joshi
Public Interest Director1.67yrs₹840.00kno data
Pravin Tripathi
Public Interest Director0.58yr₹1.11mno data
Hemang Raja
Shareholder Director3.83yrs₹940.00kno data
Madhu Jayakumar
Shareholder Director4.17yrs₹480.00kno data
Saurabh Chandra
Chairman of the Board3.42yrs₹2.09mno data
Shankar Aggarwal
Public Interest Director2.5yrs₹2.33mno data

3.4yrs

Average Tenure

62.5yo

Average Age

Experienced Board: MCX's board of directors are considered experienced (3.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Multi Commodity Exchange of India Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Multi Commodity Exchange of India Limited
  • Ticker: MCX
  • Exchange: NSEI
  • Founded: 2002
  • Industry: Financial Exchanges and Data
  • Sector: Diversified Financials
  • Market Cap: ₹50.330b
  • Shares outstanding: 51.00m
  • Website: https://www.mcxindia.com

Number of Employees


Location

  • Multi Commodity Exchange of India Limited
  • Exchange Square
  • Suren Road
  • Mumbai
  • Maharashtra
  • 400093
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
534091BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 2012
MCXNSEI (National Stock Exchange of India)YesEquity SharesININRMar 2012

Biography

Multi Commodity Exchange of India Limited operates as a commodity derivatives exchange in India. It offers online trading services, and clearing and settlement of commodity derivative transactions, as well as a platform for risk management services. The company also provides trading service in various commodity derivative contracts across segments, including bullion, industrial metals, energy, and agricultural commodities, as well as data feeds. In addition, it offers iCOMDEX, a real-time commodity futures price index, which gives information on market movements in key commodities, as well as MCXCOMDEX, MCXAgri, MCXEnergy, MCXMetal, and Rainfall Indices. The company has strategic alliances with various exchanges, such as Mozambique Commodities Exchange, Singapore Diamond Investment Exchange, CME Group, London Metal Exchange, Dalian Commodity Exchange, and Taiwan Futures Exchange. Multi Commodity Exchange of India Limited was incorporated in 2002 and is based in Mumbai, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 15:14
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.