Forensic Analyst, Trudence Capital Advisors

Nitin Mangal

Forensic Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Forensic Accounting

Multi Commodity Exchange of India / Forensic Accounting

Multi Commodity Exchange of India (MCX IN)

<ul>
<li>
<a href="https://www.smartkarma.com/entities/multi-commodity-exchange-india" target="_blank" data-smartkarma-citation="entities:13518:1" rel="noopener">Multi Commodity Exchange India (MCX IN)</a> has been having troubles at the bottom-line due to transaction fees, delay of commodity derivatives platform, etc. which is not totally within its control.  </li>
<li>However what warrants attention is the investment yield that has dropped considerably in FY22, coupled with the non-traceable interest income from the bank deposits, which has affected the margins.</li>
<li>Other forensic takeaways include no-provisioning of doubtful debts and misstatement of cash flows.</li>
</ul>



Multi Commodity Exchange India (MCX IN) has been having troubles at the bottom-line due to transaction fees, delay of commodity derivatives platform, etc. which is not totally within its control.  
However what warrants attention is the investment yield that has dropped considerably in FY22, coupled with the non-traceable interest income from the bank deposits, which has affected the margins.
Other forensic takeaways include no-provisioning of doubtful debts and misstatement of cash flows.


External broker reports(aggregated public sources), HDFC Securities

HDFC Securities

External broker reports(aggregated public sources)

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Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Equity Bottom-Up

Multi Commodity Exchange of India / Equity Bottom-Up

<ul><li>MCX growth has been driven by a surge in options volume but uncertainty around the technology shift timeline remains the key overhang</li><li>Options ADTV has increased ~2.7x YoY and is currently &gt;INR 500bn (~2.4x of futures)</li><li>The first phase of growth in options was led by a surge in traded UCCs and higher volatility in energy contracts (~85% of volume), while the next phase will be driven by bullion and the launch of new contracts (mini and index options)</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

MCX growth has been driven by a surge in options volume but uncertainty around the technology shift timeline remains the key overhangOptions ADTV has increased ~2.7x YoY and is currently &gt;INR 500bn (~2.4x of futures)The first phase of growth in options was led by a surge in traded UCCs and higher volatility in energy contracts (~85% of volume), while the next phase will be driven by bullion and the launch of new contracts (mini and index options)Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Multi Commodity Exchange: Options Drive, Tech Drags. Maintain BUY

Multi Commodity Exchange - Options Drive, Tech Drags. Maintain BUY

External broker reports(aggregated public sources), Motilal Oswal Financial Services Limited

Motilal Oswal

Motilal Oswal Financial Services Limited

Motilal Oswal Financial Services Limited is an Indian diversified financial services firm offering a range of financial products and services. 

Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<div><ul><li>Strong operational performance, an exceptional item impacts PAT -Overall futures ADT improved by 4% QoQ and options ADT jumped by 70%, which resulted in a 19% rise in revenue ahead of our estimate.</li><li>Healthy volume growth driven by Crude Oil - Total volumes grew 29% YoY and 21% QoQ to INR26t in 4QFY22.</li></ul></div><div><ul><li>Key takeaways from the management commentary - MCX is awaiting approval from the regulators (Sebi and CERC) to launch Electricity derivatives.</li></ul></div>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Strong operational performance, an exceptional item impacts PAT -Overall futures ADT improved by 4% QoQ and options ADT jumped by 70%, which resulted in a 19% rise in revenue ahead of our estimate.Healthy volume growth driven by Crude Oil - Total volumes grew 29% YoY and 21% QoQ to INR26t in 4QFY22.Key takeaways from the management commentary - MCX is awaiting approval from the regulators (Sebi and CERC) to launch Electricity derivatives.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Silver Point

Thomas J. Monaco

Silver Point is a boutique research firm that focuses on the broader financial services sector, with a particular focus on troubled institutions globally. 

Asia Ex Japan

<ul>
<li>SGX FY 1H22 core results were not robust, coming in at SGD 216 mn, improving just SGD 1.0 mn (0.5%) HOH and reflected weakened revenues; </li>
<li>Derivatives revenue improved 3.4% HOH, resultant of slightly higher contract volumes, and higher rates and lower discounts. HKEX's foray into the A50 will ultimately eat away at SGX’s business; and </li>
<li>Significant strategic alternatives are needed at SGX, if it is to avoid being hollowed out by the HKEX. </li>
</ul>


SGX FY 1H22 core results were not robust, coming in at SGD 216 mn, improving just SGD 1.0 mn (0.5%) HOH and reflected weakened revenues; 
Derivatives revenue improved 3.4% HOH, resultant of slightly higher contract volumes, and higher rates and lower discounts. HKEX's foray into the A50 will ultimately eat away at SGX’s business; and 
Significant strategic alternatives are needed at SGX, if it is to avoid being hollowed out by the HKEX. 


India

Multi Commodity Exchange of India (MCX) is India's largest commodity derivatives exchange, offering an online platform for trading commodity futures and options across segments such as bullion, base metals, energy, and agricultural commodities. The company also provides data feed subscriptions and membership services. It was founded in 2003 and is headquartered in Mumbai, India.

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Multi Commodity Exchange of India (MCX IN)

MCX Ltd- Forensic Analysis

investment yield that has dropped considerably in FY22, coupled with the non-traceable interest income from the bank deposits, which has affected...

Nitin Mangal

Multi Commodity Exchange: Options Drive, Tech Drags. Maintain BUY

MCX growth has been driven by a surge in options volume but uncertainty around the technology shift timeline remains the key overhang

HDFC Securities

Multi Commodity Exchange - Options Drive, Tech Drags. Maintain BUY

MCX growth has been driven by a surge in options volume but uncertainty around the technology shift timeline remains the key overhang

HDFC Securities

4QFY22 Results Update - MCX

Overall futures ADT improved by 4% QoQ and options ADT jumped by 70%, which resulted in a 19% rise in revenue ahead of our estimate.

Motilal Oswal

Singapore Exchange – No Real Progress

SGX: SGX reported FY 1H22 core results were not robust. The top-line hiccup was nearly offset by better-than-expected cost control.

Thomas J. Monaco

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