REVIEWS
MCX
Ticker : 534091 FV: Rs.10 52-Week H/L: Rs.1258.20/831.20
We had recommended MCX in Volume No 34 Issue No 1 (dated Oct. 23, 2017) when the scrip was trading at Rs 1110. Our recommendation was based on fundamental and technical factors. The Q3FY18 numbers are out and the company's revenue de-grew by 11.2 per cent YoY while operating profit and net profit declined by 29.8 per cent and 44.7 per cent, respectively. The ADT in commodity futures decreased by 3.7 per cent YoY, which impacted company’s volumes. Due to launch of options during the quarter, the operating cost increased. It is planning to seek approval from SEBI for more option contracts. The revenue and margin are expected to improve once the company starts charging option fees. We recomÂmend investors to accumulate the stock at this level and average out the investment and later continue to HOLD.
PREMIER EXPLOSIVES
Ticker: 526247 FV: Rs.10 52-Week H/L: Rs.539.35/328
We had recommended Premier Explosives in Volume No 33 Issue No 41 (dated July 31, 2017) when the scrip was trading at Rs 497. Our recommendation was based on receipt of new orders and foray in the space sector. In November 2017, the company bagged an order from Coal India worth Rs 140 crore. The order is for supplying of bulk explosives and is expected to be executed by Oct. 31, 2019. Hence, revenue recognition will improve going forward. The company is trading at TTM P/E of 32.2x which is a bit higher as compared with its peers in the industry. We expect limited upside in the price in the short run. As our target date has been reached, we recommend investors to EXIT from the scrip.