160 Crs incremental hit to networth because of 63 Moons contract extension.
MCX trades at 5 times book.
800 Crs. erosion should happen in market cap.
On Dec 30, 2022, MCX was trading at 7920 Crs when they announced the contract extension. It started correcting post the announcement. Today it fell further to adjust for the new information = incremental impact of 60 Cr each in Q4 FY23 and Q1 FY24.
M Cap at today’s low of 1400 = 7140 Crs. Difference of ~800 Crs. Market has already priced it in.
Key drivers going forward:
- Options volumes growth
- Approval for electricity derivatives
- Launch of mini contracts in Base Metals (which was suspended by SEBI few years ago and permitted again last month). Energy mini contracts will follow in sometime.
- Launch of monthly contracts in Gold (currently only bimonthly and hence higher premiums in Options)
- Coal ministry decision in March on coal exchange (MCX or IEX or both?)
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