Multi Commodity Exchange of India Ltd.
ISIN: INE745G01043 • Market Cap: ₹75,809 Cr
The 5-Pillar Quality Audit for Multi Commodity Exchange of India Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (72.2%), Return on Capital Employed (18.0%), and equity compounding (19.9%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.00 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (72.4%) and 3Y PAT CAGR (118.1%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 49.17 vs PEG of 3.28 and Dividend Yield of 0.3%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at —, backed by 80.7% institutional ownership.
Key Fundamental Strengths
Robust Equity Compounding (ROE: 19.9%)
Shareholder equity compounds at a healthy 19.9%, exceeding average Indian equity benchmarks.
Fortress Balance Sheet (D/E: 0.00)
The company operates virtually debt-free, shielding net margins from interest rate cycles and monetary tightening.
Strong Topline Expansion (3Y Sales CAGR: 72.4%)
Revenue has expanded at 72.4% CAGR over 3 years, signaling industry market-share gains.
High-Velocity Profit Compounding (3Y PAT CAGR: 118.1%)
Net earnings have compounded at 118.1% annualized, demonstrating operating leverage.
Deep Institutional Sponsorship (80.7%)
Mutual funds, domestic DIIs, and foreign FIIs hold 80.7%, providing strong governance scrutiny.
Areas to Watch & Potential Risks
Sectoral & Macro Headwinds (Financial Services)
Subject to broader cyclical demand, raw material price shifts, and regulatory frameworks governing the Financial Services space.
Quantitative Strategy Eligibility
Checking MCX against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Passes Saurabh Mukherjea's Coffee Can rule: 10%+ sustained revenue growth and 15%+ ROCE/ROE.
Quality Factor Screener (High RoIC + Low Debt)
Qualifies for Indian Quality Indices with overall score of 84/100 and clean gearing.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Financial Services Sector Peer Comparison
Compare MCX directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| Multi Commodity Exchange of India Ltd. (MCX)Current | 84/100 | ₹75,809 Cr | 49.17 | 18.0% | 0.00 | — |
| HDFC Bank Ltd. (HDFCBANK) | 74/100 | ₹11.10 Lakh Cr | 14.05 | 12.8% | 1.01 | View |
| ICICI Bank Ltd. (ICICIBANK) | 76/100 | ₹10.06 Lakh Cr | 17.94 | 16.5% | 0.62 | View |
| State Bank of India (SBIN) | 71/100 | ₹9.66 Lakh Cr | 11.20 | 12.2% | 1.38 | View |
| Bajaj Finance Ltd. (BAJFINANCE) | 68/100 | ₹6.72 Lakh Cr | 33.07 | 13.9% | 3.86 | View |
| Life Insurance Corporation of India (LICI) | 87/100 | ₹5.22 Lakh Cr | 8.70 | 37.8% | 0.00 | View |
Frequently Asked Questions: Multi Commodity Exchange of India Ltd.
Q:What is the 5-Pillar Fundamental Score for Multi Commodity Exchange of India Ltd. (MCX)?
Multi Commodity Exchange of India Ltd. has a RupeeTools Fundamental Score of 84/100, placing it in the 'Exceptional Quality' category. Its pillar scores are: Profitability (86/100), Financial Health (89/100), Growth (99/100), Valuation (40/100), and Ownership Quality (95/100).
Q:Is MCX fundamentally strong for long-term investment?
Yes, MCX exhibits solid fundamental strength with a 84/100 score, driven by a return on equity of 19.9% and a debt-to-equity ratio of 0.00.
Q:Does MCX pass the Coffee Can Investing filter?
Yes! MCX satisfies both core pillars of Coffee Can Investing: achieving consistently high capital returns (ROCE/ROE >= 15%) alongside double-digit multi-year revenue growth.
Q:How does MCX compare against other Financial Services peers?
Within India's Financial Services sector, MCX trades at a P/E of 49.17 and generates an ROCE of 18.0%. Compare its 5-Pillar score of 84/100 against top sector peers like HDFC Bank Ltd. (74/100), ICICI Bank Ltd. (76/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.