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RATING

RECOMMENDATION

Sell

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RATING

RECOMMENDATION

Sell

Business Type

Fairly Valued

ISIN

INE678L01012

Face Value

₹5.00

Total Share

53,35,07,476

Total Income

₹3.85 Cr

Profit After Tax

-₹25.67 Cr

Promoter Holding

31.19 %

EPS

-₹0.48

P/E

-20.83

P/B

3.54

Market Capitalisation

₹533.51 Cr

Book Value

₹2.83

Intrinsic Value

₹11.00

Earnings Yield

-4.80 %

Sector

Financials

Sub-sector

Stock Exchange & Ratings

Category

Growth Phase

Cashflow - Operations

-₹21.28 Cr

Cashflow - Financing

-₹0.61 Cr

ICEX Growth

Compounded Sales Growth

  • -52.32%

    1 Year

  • -38.23%

    3 Year

  • 40.07%

    5 Year

Pro Only

Compounded Profit Growth

  • NA

    1 Year

  • NA

    3 Year

  • NA

    5 Year

Pro Only

Return On Equity

  • -17.01%

    1 Year

  • -7.64%

    3 Year

  • -19.41%

    4 Year

Pro Only

About ICEX

  • Indian Commodity Exchange Limited (ICEX) is SEBI regulated online Commodity Derivative Exchange. It was registered in 2018. Headquartered at Mumbai, the exchange provide nationwide trading platform through its appointed brokers. The company offers the platform for derivatives of precious metals, industrial metals, spices, oil complexes, energy products, fibers, and various agricultural products. ICEX serves farmers, traders, and actual users in the Indian market.
  • The exchange has now 14 different commodity derivatives contracts available for trading on its platform.   
  • ICEX is the first exchange in India to adopt global hi-tech platform that ensures automatic and seamless switch-over from its Data Center (DC) to the Disaster Recovery (DR) site with zero data loss in case of exigencies. 
  • During the FY 2018-19, the Hon’ble National Company Law Tribunal (NCLT) sanctioned the amalgamation of National Multi-Commodity Exchange of India Limited (“NMCE”) with ICEX vide its common order dated 27 August, 2018 and 31 August, 2018, and the merger was effective from 7 September, 2018.
  • ICEX has created world’s first organized, transparent and regulated derivatives market for diamond. 
  • On 11th July 2019, ICEX launched ‘Paddy Basmati’ Derivatives Contract while on December 27, 2019 the Exchange launched ICEX MF Platform, a mutual fund platform to facilitate transactions in Mutual Fund.
  • ICEX helps farmers in key aspects like price discovery, risk management. Also, allows them to trade in derivative contracts which are not available in MCX.

  • ICEX IPO Details

ICEX is not a listed company and there is no news for Upcoming IPO

  • ICEX Merger & Acquisition

Merger

On 3rd September 2018, The National Company Law Tribunal (NCLT), has approved the merger of Ahmedabad based National Multi Commodity Exchange (NMCE) with reliance anchored ICEX. It creates India’s third largest commodity derivatives exchange offering a wide range of commodity contracts which includes Rubber, Castor Seed, Mustard Seed and Jute apart from Diamond and Steel.

  • ICEX Revenue Segmentation

  • Other Income
  • Transaction fee
  • Other membership fee
  • Connectivity charges
  • ICEX Product & Services

Exchange Operation

  • ICEX Assets

Assets of the company include Furniture and fixtures, Leasehold improvements, Computers, Equipment, Office buildings, Vehicles.

  • ICEX Industry Overview

Industry Statistics

  • One of the method to invest, diversify and ensure a positively healthy portfolio is commodity trading. The commodity market in India is over 100 years old but was officially established through a legal trading mechanism in the year 2003.
  • SEBI regulates the commodity derivatives market in India since September 28, 2015. Before 2015 the Commodity derivatives market was regulated by erstwhile Forward Markets Commission (FMC).
  • According to ICEX India is well positioned in commodity trade to provide global benchmark reference price in multiple commodities. In most of the globally traded commodities, India is among the top five either in production or consumption or import and export.
  • Over last 5 years revenue of the industry has been grown at an average of 3.07%. while net profit has seen growth of 6.77%.
  • Major part of commodity market has been grabbed by MCX i.e., 92.6%, while ICEX cover less then 1% of the market share.
  • Large part of revenue for this industry comes from Commission on trade and this increase with the increase in participation of members. As the amount of trade increases, prices of the commodity also increases and this will led to increase in commission for exchange.
  • This industry is partially cyclic, as demand of commodities differ at different times, and specifically crops, they are seasonal.
  • Less then 1% of the people take actual trade, others only buy for speculation or arbitrage. 

Future Prospects

  • Commodities are an important aspect of individual's daily life and they will be used forever. Their demand may go up and down at times, but in long term they will prove to be effective and useful investments.
  • For investors, commodities can be an important way to diversify their portfolios beyond traditional securities. Because the prices of commodities tend to move in opposition to stocks, some investors also rely on commodities during periods of market volatility.
  • Institutes has also increased using commodity hedge funds to reduce their risk and they their demand is increasing every year.
  • Policy changes like Improved farmer access to agriculture markets, better credit facility and upbeat sentiments about the economy, particularly agriculture, have created lot of interest and euphoria about the commodity markets.

Government Initiatives

  • SEBI regulates the commodity derivatives market in India since September 28, 2015. Before September 28, 2015, the Commodity derivatives market was regulated by erstwhile Forward Markets Commission (FMC).
  • Considering the aforesaid inputs, SEBI decided that during initial phase, focus shall be more on understanding and strengthening the existing micro-structure of the commodity derivatives markets and the market development may be visited thereafter. Accordingly, two markets viz., commodity derivatives and rest of the securities markets were kept segregated initially.
  • Commodity derivatives exchanges were given time to come at par with the stock exchanges with respect to certain regulatory norms e.g. net worth requirements, shareholding norms, clearing through separate clearing corporations etc. Some of these objectives related to clearing of trades through clearing corporation and shareholding norms are yet to be achieved.
  • In 2020 it was decided that the integration between securities would be achieved in two phases. In Phase-I, it was proposed to have integration at Intermediary level. In Phase-II, necessary steps would be taken to enable a single exchange to operate various segments such as equity, equity derivatives, commodity derivatives, currency derivatives, interest rate futures & debt etc.
  • Recently SEBI has taken various steps to boost commodity derivative market. In a major decision to strengthen commodity market, SEBI permitted mutual funds to participate in commodity futures along with PMS.

ICEX Strengths

  • Company is continuously innovating its products and bringing new commodities in its portfolio. It has also created world’s first organized, transparent and regulated derivatives market for diamond. 
  • The average daily turnover during F.Y 19-20 was ₹ 156.41 crores as compared to ₹ 93.62 crores in F.Y 2018-19 (single side) with a total of 7098 clients traded on the exchange .
  • The total volume traded during F.Y 19-20 was 7,89,08,656 lots as compared to 5,55,00,358 lots in F.Y 18-19.
  • Company has national reach with 138 SEBI registered members, having 1298 Authorised Persons, operating through 3340 terminals including Computer to Computer Link (CTCL) across 329 cities / towns across India as on March 31, 2020. 
  • ICEX is the first Exchange in India to adopt a global hi-tech platform, which ensures automatic and seamless switch-over. Also, it prevents data loss from its Data Center (DC) to the Disaster Recovery (DR) site.
  • ICEX does not have any debt and have some prominent investors, which include Reliance Exchange next Limited, MMTC Ltd, Indian Potash Limited etc.

ICEX Shortcomings

  • ICEX covers less then 1% market share of commodity exchange market.
  • Total revenue of the company has seen a fall of more than 50% in FY21 due to reduction in operating income like transaction fee, membership fee etc.
  • Revenue and net profit growth of the company is negative while industry average is much higher i.e., 3.07% and 6.77% respectively.

ICEX Opportunities

  • Volume of trade is increasing due to increased investors participation.
  • Due to higher participation in commodity market, volatility is very high and this led to increase in prices of commodity.
  • Technology for trading is getting advanced day by day which creates many opportunities for the exchange to make services more user friendly.
  • Exchange can bring new type of commodity to trade on their platform to remain ahead of competitors.

ICEX Threats

  • MCX is the biggest commodity exchange in India, and it can be difficult for ICEX to compete with it.
  • Maximum financial data of the company is negative, and is lying within same band from last 5 years.
ICEX Rating

  • RECOMMENDATION

    Sell

  • ICEX Detail Info

Industry Statistics

PUBLIC LIMITED

Registered In

India

last Updated

28/10/2021

Registered Date

18/08/2008

Planify Ticker

ICEX

Reg Office: Office No.109, 1st Floor, Nodh No. 1158 to 63/65/9, Hat Faliyu, Airoli, Navi Mumbai – 400708

Website: http://www.icexindia.com