MCX shares open lower even as Q4 net profit climbs 16x YoY; MS sees over 48% downside
The brokerage pointed that it awaits details on the call. Furthermore, costs were on the higher side versus estimate. Additionally, focus on the call will be understanding recurring costs better.
Shares of the country's leading commodity exchange MCX in Wednesday's session traded lower by over 3.5 per cent or Rs 143.2 at Rs 3885.2 per share on the BSE after the company's came in below estimates. For the quarter ended March 31, 2024, the company's total income increased by Rs 45.62 crore from Rs 153.83 crore to Rs 199.45 crore, up by 29.66% over the corresponding quarter last year and decreased by Rs 9.81 crore from Rs 209.26 crore to Rs 199.45 crore, lower by 4.69% over the sequential quarter.
At the day's low, the stock hit levels of Rs 3800, falling as much as 5.67 per cent.
The operating income during the three months increased by 35.43% to Rs 181.14 crore from Rs 133.75 crore over the corresponding quarter in last year and decreased by 5.42% to Rs 181.14 crore from Rs 191.53 crore over the sequential quarter.
Profit at the company grew 16 times on year to Rs 87.9 crore. It was at Rs 5.45 crore in the March ended quarter of FY23. Margin, however at the company, rose sharply to 56.3 per cent as against 1.6 per cent during the same period of the previous fiscal year.
Brokerage view on MCX post Q4 results
The global brokerage Morgan Stanley maintained underweight with a target price of Rs 2085. This signifies a steep downside of over 48 per cent. The brokerage is of the view that the company missed Q4 PAT estimates and consensus sharply. Also, the operating revenue came in lower than estimates. The brokerage pointed that it awaits details on the call. Furthermore, costs were on the higher side versus estimate. Additionally, focus on the call will be understanding recurring costs better.
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