 "MCX hits 52-week high on heavy volumes")
Shares of Multi Commodity Exchange of India (MCX) have rallied 7% to Rs 1,040 on National Stock Exchange (NSE) on back of heavy volumes.
The stock opened at Rs 976 and touched a 52-week high of Rs 1,059 on NSE. Till 1130 hours, a combined 1.73 million shares changed hands on the counter against an average around one million shares that were traded daily in past two weeks on NSE and BSE.
Post October-December (Q3FY15) quarter results the stock has outperformed the market by gaining 21% from Rs 860 on February 13, compared to less than 1% rise in the benchmark CNX Nifty.
MCX had reported expansion of nearly 900 basis points in standalone EBITDA or operating profit margin to 58% in Q3FY15 from 45% in the same quarter last year.
According to Vivekanand Subbaraman, analyst at HDFC Securities, MCX’s Q3FY15 results were ahead of estimates as the company’s cost control surprised positively.
The company’s average daily trading volume (ADTV) continues to improve, led by renewed focus on product launches. The company’s board has cleared the appointment of Mr. V. Balasubramaniam as the company’s new MD & CEO. This brings an end to the leadership uncertainty that the company faced and is positive for the business.
Analyst maintain ‘Buy’ rating with a target price of Rs 1,180 on the stock on account of significant business operating leverage, potential for non-linear growth driven by conducive policy framework.
The stock opened at Rs 976 and touched a 52-week high of Rs 1,059 on NSE. Till 1130 hours, a combined 1.73 million shares changed hands on the counter against an average around one million shares that were traded daily in past two weeks on NSE and BSE.
Post October-December (Q3FY15) quarter results the stock has outperformed the market by gaining 21% from Rs 860 on February 13, compared to less than 1% rise in the benchmark CNX Nifty.
MCX had reported expansion of nearly 900 basis points in standalone EBITDA or operating profit margin to 58% in Q3FY15 from 45% in the same quarter last year.
According to Vivekanand Subbaraman, analyst at HDFC Securities, MCX’s Q3FY15 results were ahead of estimates as the company’s cost control surprised positively.
The company’s average daily trading volume (ADTV) continues to improve, led by renewed focus on product launches. The company’s board has cleared the appointment of Mr. V. Balasubramaniam as the company’s new MD & CEO. This brings an end to the leadership uncertainty that the company faced and is positive for the business.
Analyst maintain ‘Buy’ rating with a target price of Rs 1,180 on the stock on account of significant business operating leverage, potential for non-linear growth driven by conducive policy framework.