Stocks to buy today: The Multi Commodity Exchange or MCX share price has been in a consolidation phase for almost a year. In the last one year, MCX shares have fallen by about 21 per cent, while in 2022 it has fallen by almost the same percentage. It is one of the dividend paying stocks as MCX has declared a final dividend of 174 per cent and ICICI Securities expects the stock to come out of the consolidation phase. ICICI Securities believes MCX share price may rise 1,715 each level provides about 40 percent bullish momentum over the long term.
Pointing to the positives in Q4FY22 results, ICICI Securities Research report says “MCX reports strong Q4FY22 results with EBITDA 500mn vs Rs1.6bn for FY22. We expect the company to achieve a PAT CAGR of 30% between FY 2012-24 with (1) increase in options and (2) cost savings with installation of new software platform with TCS. Our estimate factors in an overall ADTV (futures + options) of 550/600bn in FY23/FY24 which has already gone up from Rs342bn in FY22 to Rs459bn in FY23-TD (data as of May 16’22). We factor in the total software-related cost as seen in FY 2018-21 and the run-rate of Rs 600 million versus additional depreciation of Rs 300 million in FY 24. We believe both of these estimates are conservative.”
On its suggestion to position investors with respect to MCX shares, ICICI Securities says, “We upgrade the stock with the revised target price for Add to Buy. 1,715 (before: 1,650) based on 35x FY24E core EPS (rollover from FY23/24E) 43.6 and free cash of Rs 181 per share.”
MCX has recently declared final dividend of 174 per cent in FY22. Explaining the recommendations of its Board of Directors to Indian Exchanges, MCX said, “As per Regulation 33 read with Regulation 30 of SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015, it is kindly informed that the Board of Directors of the Company shall be The meeting held today has, inter alia, recommended the final dividend of 17.40/- per equity share (face value of Rs.10/- each) for the financial year ended 31st March, 2022, subject to deduction of tax at source and approval of the shareholders in the ensuing Annual General Meeting. The date of the Annual General Meeting, the record date for determining the eligibility of shareholders for payment of dividend and the date of payment/remittance of dividend will be intimated later.”