NCDEX Highlights H1FY25
NCDEX trades at an indicative CMP of ₹215 in the Private Markets with a market cap of ₹1,089.53 Cr.
➡️H1FY25 vs H1FY24
– Revenue from ops has decreased by ₹16Cr to stand at 52.49 Cr on a Y-o-Y basis.
– The reduction in revenue comes from reduction in all the main lines of business i.e. commodity exchange service, clearing service and e-market service.
– Apart from their Repository Business posting an operational profitability of 2Cr, none of the other 6-7 business lines are operationally profitable.
– EBITDA loss has increased to ₹(31.53) Cr as compared to ₹(11.24) Cr.
– PAT has been positive this half year due to an exceptional item of 47.66Cr which was because of a stake sale in PXIL (associate company).
➡️The company had decided to do a private placement of 1,89,76,358 Eq shares at ₹160.60 per share. This was supposed to close on November 2024 but has extended to Feb 2025.
➡️NCDEX commodity futures market share has decreased from 3.9% In April 2024 to 2.02% in December 2024.
➡️NCDEX is mainly into Agri commodity derivatives and MCX is into Non Agri Commodity. For MCX Agri commodity market share increased from 2.12% in FY24 to 2.65% in December 2024. Indicating a loss of market share from NCDEX main line of business.
➡️ FY24 vs FY23
– In FY24 the company had 20 Agri commodities offered for trading as compared to 23 in the previous year.
– New FPOs registered was 60 for FY24 as compared to 95 a year ago
– Their trading terminals reduced from 3,611 to 3,248.
– Storage Capacity reduced from 4.08 Lakh MT to 3.33 Lakh MT.
– The Average Daily Trade Value stood at 848.20 Cr in FY24 as compared to 834.31 Cr in FY23.
➡️NSE holds a 15% stake in the company as on FY24.
➡️MCX trades at a market cap of ₹29,079 Cr with a TTM PE of 56.7 times.
All in all this sector in which they operate in is highly regulated and the regulators can decide if a commodity can be added to trade / ban trading on the same. The company has not shown any signs of growth over the past year and a half and have lost significant market share to MCX who does not even operate in Agri Commodities as their main business line.
