Tweet From Analyst Mohalla

I agree with you that the bookings include JVs as well as projects where GP is development manager. However, this is just a back of the envelope calculation to arrive at a rough fair value. I tend to purchase only when there is at least 20% margin of safety.say at a MCap of 43,000 Cr (1550/share).

Having stated the above, if one has got the purchase price right, GP is a hold for the next years and a half at a minimum. I believe there will be surplus inventory in 2 years.

Please note this is NOT a buy or sell advice. I am NOT a SEBI registered adviser.

(post deleted by author)

Q4 FY24 con-call highlights

MCX

Current Performance:

• The company has successfully managed the entire technology exceptional item related to a payment made to a vendor.
• Costs are projected to remain stable and not dependent on turnover in the future.
• The company has capitalized software costs of 237 crores, encompassing servers, networking equipment, and operating and application software.
• Amortization periods for the capitalized software costs vary, with hardware being amortized over 5 years, networking equipment over 5 years, and the platform over 10 years.
• An additional depreciation cost of 30-35 crores annually is anticipated due to the capitalized software costs.
• Direct market access (DMA) has been introduced for foreign portfolio investors (FPIs) category one, with the FPI category two in the pipeline for testing.
• Transaction charges from options and futures have increased, with 55 crores from futures and 101 crores from options during the quarter.
• Steel contracts have been launched, and the company is actively involved in setting up a coal exchange in collaboration with M-junction.

Future Outlook:

• The company is actively engaged with the ministry and regulators for setting up a coal exchange and is eager to venture into this area.
• Plans are in place for launching options on mini contracts of crude and natural gas and setting up a coal exchange in collaboration with M-junction.
  Concerns:
• While there has been a decline in active UCCs in previous months and quarters, the company anticipates continued growth in the future.
  Other Points:
• Significant growth in ADTO and UCC was observed in Q3, with a projected correction in ADT in futures.
• The company continues to actively pursue the establishment of a coal exchange in collaboration with M-junction.
• Overall, the company has effectively managed the technology exceptional item and foresees stable costs in the future. It is actively pursuing initiatives such as setting up a coal exchange and expanding its market offerings. Despite some concerns, the company remains optimistic about its future prospect