Multi Commodity Exchange - March 2013 Results Preview - Motilal Oswal

- While the Finance Minister introduced 1bp Commodities Transaction Tax (CTT) in the Union Budget, it is yet to be implemented and hence will not have an impact on volumes in 4QFY13E.

- Value of the total volumes transacted during the quarter at MCX is INR35t, down 2.1% YoY and 4.4% QoQ. Hence, our revenue estimate for the exchange stands at INR1,113m, down 5% YoY and 4.4% QoQ.

- Our EBITDA margin estimate for the quarter is 56.3%, down 170bp QoQ, primarily due to lower volumes and revenue in a highly operating leveraged model. In absolute terms, our EBITDA estimate for the quarter is INR635m, down 12% QoQ and 14% YoY. Our EBIT estimate for the quarter is INR548m.

- Our PAT estimate stands at INR671m, down 11.6% QoQ.

- The stock trades at 16.1x FY14E and 13.7x FY15E EPS, Maintain Buy.

Source : Equity Bulls

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