'Buy' Maintained On MCX By HDFC Securities, Cites New Products, Stable Techs To Be Growth Engines

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .HDFC Securities Institutional Equities.We recently met with the management of Multi Commodity Exchange of India Ltd. and gained understanding that the company is gearing up for its next phase of growth. The strategic pillars driving this include the introduction of new products, boosting market participation, and enhancing technological capabilities. The regulator has, in principle, agreed to one weekly expiry per week for an exchange, making the launch of crude or index weekly expiry options a possibility. While the weekly options will scale up the notional volume, the premium-to-notional ratio will be lower, so maintaining equilibrium to avoid the loss of premium is crucial. The primary focus of MCX management over the last few years was on technology transition. The key focus from here will be product and market development, and the launch of mini contracts and monthly expiry gold options (Nov 24) are steps in this direction. The options segment is dominated by crude and natural gas; the launch of cash settled index options contract will boost gold volume. The recently launched mini contracts are ~25/5% of futures and options volume. We expect notional/premium volume to register a +58/43% CAGR over FY24-27E. The options notional volume was down ~21% in October but higher volatility has led to a rise in P/N% ratio, leading to only 6% fall in options premium. We expect the premium average daily trading volume to be at Rs 38.02 billion for Q3 (versus 40 billion earlier) leading to a slight cut in EPS estimate for FY25/26E. We expect the volume to increase gradually with scaling/launch of new products and rising FPI and investor participation in commodities. We maintain out Buy rating with a target price of Rs 7,000, based on 40x Dec-26E core EPS + net cash..Click on the attachment to read the full report:.Banking Stocks To Buy: SBI, ICICI Bank, Axis Bank Among DRChoksey's Top Bets To Buy, Sees Uptil 30% Upside .DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

'Buy' Maintained On MCX By HDFC Securities, Cites New Products, Stable Techs To Be Growth Engines

The new management team of MCX is expected to accelerate the product launch timeline and accelerate the next phase of growth, says the brokerage.

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'Buy' Maintained On MCX By HDFC Securities, Cites New Products, Stable Techs To Be Growth Engines

The new management team of MCX is expected to accelerate the product launch timeline and accelerate the next phase of growth, says the brokerage.

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