MCX Share Price Plunges Over 9% on Weak Q3 Results

MCX Share Price Plunges Over 9% on Weak Q3 Results

VoM News Desk | February 12, 2024 | 03:42 PM IST | Breaking News | Follow on Google News

MCX Share Price Plunges Over 9% on Weak Q3 Results

MCX Share Price Plunges Over 9% on Weak Q3 Results

Multi Commodity Exchange of India (MCX) witnessed a more than 9% decline in its share price during Monday’s trading session following disappointing Q3 results. The bourse reported a net loss of ₹5.3 crore for the December quarter, a significant downturn from the ₹39 crore net profit in the same period the previous year. Despite a 33% increase in revenue from operations to ₹191.5 crore, the weak financial performance led to a bearish momentum, with the stock reaching an intraday low of ₹3,460.80.

Technical Analysis and Market Outlook

Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, noted a strong rally in MCX share prices over the past few months but observed significant profit booking in the current session. While the overall trend remains upward, ongoing bearish momentum suggests potential long-term opportunities for profit booking. The support level is identified at ₹3,350, with resistance at ₹3,800.

ICICI Direct Research Analysis on MCX Q3 Performance

ICICI Direct Research highlighted that MCX recorded a robust increase in revenue and topline, with average daily turnover (ADTO) in the futures market growing by 10.8% QoQ to ₹18,763 crore, led by greater turnover in bullion. The options market also experienced momentum, with ADTO increasing by an average of 11.7% each quarter. While operational revenue rose by 16% on a quarterly basis to ₹191.5 crore, higher software costs of ₹12.5 crore resulted in an EBITDA loss of ₹1.2 crore and a net loss of ₹5.35 crore.

ICICI Direct Research’s Future Outlook for MCX

ICICI Direct Research anticipates sustained growth momentum through digital monetization and new releases, driving strong revenues from FY25 onwards. The synergy from Pocket Aces and opportunities in areas like web series and artist management are expected to contribute to further growth. The impact of certain OTT apps going behind paywalls contributed to a temporary moderation in revenue momentum. The report emphasizes the potential for continued growth through digital strategies and diversification.

VoM News Desk

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