BQ Prime’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 BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
ICICI Securities Report
Volume rise in options has been our consistent investment thesis on Multi Commodity Exchange of India Ltd. Options average daily trading volume has crossed Rs 400 billion as of the first 16 days of September 2022-to-date from Rs 78 billion in Sep-21.
This rise can be attributed to steady recovery from the impact of peak margin norms from Sep-21 and continued volatility in commodity prices.
Options volumes can maintain the current momentum with the expected launch of new products such as gold monthly options with gold (1kg) futures as the underlying asset.
Based on volume trends, MCX could report 28% QoQ growth in operating profits in Q2 FY23E.
Strong industry position rules out any cut in multiples. Hence, once the gain from rising options volumes outweighs the decline from lower futures volumes, the ensuing growth in earnings will add significant upside to the stock.
MCX seems to be in that zone currently with options growing and futures volumes remaining steady.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR