MCX share price slumps over 5% on mixed Q4 earnings; here’s what analysts say

Multi Commodity Exchange of India (MCX) share price slumped over 5% on Wednesday's session following the commodity exchange mixed Q4FY24 results. MCX share price today opened at an intraday high of ₹4,015 and touched an intraday low of ₹3,800. 

Rajesh Bhosale, - equity technical and derivative analyst at Angel One, said that post-quarterly results, prices have reacted negatively and are under pressure. The overall trend is positive, and we will have to see how markets react in the near term. The next support is at 3600, whereas beyond 4000, the stock will resume its uptrend.

MCX's total income for the quarter ended March was ₹45.62 crore more than ₹153.83 crore, up 29.66% over the same quarter the previous year, and ₹9.81 crore lower than ₹209.26 crore, down 4.69% over the same quarter. 

Also Read: ICICI Prudential share price falls over 6% after Q4 results; Should you buy, sell or hold the stock?

The company's profit increased 16 times a year to ₹87.9 crore. In the FY23 quarter that ended in March, it was valued at ₹5.45 crore. However, the company's margin increased dramatically to 56.3% during this same period of the previous fiscal year, up from 1.6%.

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

ICICI Direct brokerage Research said in its research that MCX's performance in Q4FY24 was mixed. The volume of options has grown from ₹95,989 crore in Q3FY24 to ₹113,672 crore, while the amount of futures has decreased from ₹20,796 crore to ₹17,558 crore. As a result, operating revenue decreased slightly from ₹191 crore to ₹181 crore. In Q4FY24, the bottom line increased to ₹87.9 crore from a loss in the preceding quarters, driven mostly by an expected decrease in software expenses.

Also Read: Cyient DLM share price surges over 13% after Q4 PAT jumps 81% YoY

“While anticipated recovery in earnings and continued uptick in options bodes well, management commentary on new product launch needs to be watched,” said the brokerage.

The global brokerage Morgan Stanley kept its target price at ₹2,085, according to news reports, and maintained an underweight rating. This means that the downside is steep—more than 48%. According the brokerage, the company's Q4 PAT projections and consensus were significantly missed. 

During the call, the brokerage said that it is still awaiting details. The costs also exceeded the estimate by a considerable amount.

Also Read: Tata Elxsi share price falls 5% post Q4 results; A 700% dividend announcement fails to lift investor sentiments

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.