Hi was going through the company financials and wanted input from members who are more closely following the company –

1. Are tower 1 and 2 currently completely unusable?

2. Has CAPEX of Tower 2 or BEC Hall 6 started?

3. In Q2 the revenue for BEC has grown marginally however profits have fallen sharply. Why has this happened? I’m not able to figure out why the expenses should have risen significantly for this vertical?

Your confusion arises from an understanding that there will be multiple exchanges(A,B,C), that won’t be the case.
When market coupling is implemented, the MCO(Market Coupling Operator) becomes the sole exchange, and current players like IEX, PXIL and HPX get reduced to brokers. An analogy would be, MCO will be NSE and current exchanges like IEX will be brokers like Zerodha, Angel One etc.
So in this scenario, all transactions occur on MCO while the role of IEX will be primarily of price discovery. This is the popular understanding of MCO implementation, if there is a twist we will have to wait and watch.

This article gives a good introduction to overall business of IEX:

I feel rerating will happen due to

• single digit PE and near book value while company over long run is growing in double digit
• gold price increase ( my prediction is 2500 USD in 2024 ie 25% increase in gold prices )
• non gold portfolio growth benefit
• gold loan growth
• improving operating efficiency
• increase in gold loan branches
• competition slowing down

Derating will happen

• if growth stops or slows
• gold price goes down
• regulatory changes
• pandemic
• intensified competition

It’s multi factorial ,so far cheap valuation offers the cushion from major downside

I am biased towards rerating
So far price movement is in strong favour

The INDUStry Show with Pratik Gupta

Pratik Gupta heads Gensol EV. He was founder of Storm Inc which Gensol acquired.