About NCDEX Unlisited Share
The National Commodity & Derivatives Exchange Limited (NCDEX) is a major online commodities exchange in India, specializing in agricultural and non-agricultural derivative products. Established on April 23, 2003, NCDEX started its operations in December 2003, with the goal of creating a transparent, efficient, and secure platform for trading commodity derivatives. The exchange was recognized as a deemed recognized stock exchange by the Securities and Exchange Board of India (SEBI) on September 28, 2015.
Business Divisions:
NCDEX operates across multiple segments, providing a broad range of services in the commodity derivatives market:
- Commodity Trading:
NCDEX facilitates the trading of 23 agricultural and non-agricultural commodities, such as pulses, spices, and guar. These commodities hold economic significance in India, and NCDEX provides a platform for efficient trading, price discovery, and risk management for these products.
- Futures and Options Trading:
NCDEX is well-known for offering commodity futures, options in goods, and index futures. These derivatives help market participants hedge against price volatility in the commodity markets, ensuring more stability in agricultural and industrial sectors.
- Technology and Infrastructure:
NCDEX is recognized for its technology leadership, being the first Indian exchange to operate out of a Tier-IV data center. This state-of-the-art infrastructure supports secure and efficient trading, providing a robust platform for investors and traders.
- Price Benchmarking:
NCDEX serves as a benchmark for commodity prices in the domestic and global markets, particularly for agricultural commodities. It helps set reliable price markers that market participants can use for their trading strategies and investment decisions.
- Educational Initiatives and Market Awareness:
NCDEX is involved in improving market literacy and raising awareness about the benefits of derivatives trading, especially in rural areas. By offering various educational programs, the exchange aims to empower farmers and small traders.
Financial Highlights:
Below are the key financial highlights for National Commodity & Derivatives Exchange (NCDEX) Limited Unlisted Shares:
- Revenue Decline:
NCDEX’s revenue from operations has been declining year-over-year. In FY 2023, it stood at ₹104 crores, dropping to ₹96 crores in FY 2024. The drop in revenue is primarily due to reduced commodity volumes, regulatory changes, and the suspension of key traded commodities.
- Operating Losses:
NCDEX has experienced operating losses over the past few years. In FY 2024, the exchange’s EBITDA was -₹65 crores, and its Operating Profit Margin (OPM) was negative at -67.71%. This indicates a significant challenge in maintaining profitability despite its market presence.
- Profitability Impact from Suspended Commodities:
The suspension of several key commodities, including pulses and spices, had a severe impact on profitability. These commodities contributed approximately 70% of the exchange’s volumes, and their suspension led to a drop in deposits and deliveries.
- Improved Profitability in Q1FY2025:
However, in Q1 FY2025, NCDEX showed signs of improvement. The exchange reported a Profit After Tax (PAT) of ₹23 crores, with a remarkable Net Profit Margin (NPM) of 95.83%, up from a negative -32.26% in Q1 FY2024. The improvement was driven by exceptional income and a recovery in market activity.
- Book Value and Market Capitalization:
NCDEX’s book value per share is ₹69.73, with a P/E ratio not applicable due to its negative earnings. The exchange’s market capitalization stands at approximately ₹1,637 crores, offering a relatively small market presence compared to larger exchanges like MCX.
Disclaimer*This research has been conducted on available data. Investors are advised to perform their own research and due diligence before making any investment decisions. We are not responsible for any financial losses or inaccuracies in the data provided
