Scrip: - Financial Technology. BSE Code: -526881 CMP: -423.60 (BSE) Market Cap: -1944.32Cr 52 Week H/L : - 2190.00 - 404.00 Summary: - Financial Technology one of the favorite scrip of investors floated by Mr. Jignesh Shah. Financial technology has many products working in the financial trading markets. It has products like ODIN, Inet.net, iWin, FXDirect, etc. These cover all stages of trading – pre trade, trade and post trade. These products cater to Exchanges, Brokers, AMCs,, Depositories, Custodians, Banks, etc. Financial technologies has set up two commodity exchanges Multi Commodity Exchange (MCX) and Dubai Gold and Commodity Exchange (DGCX). Over the next few years the commodities market is expected to experience exponential growth and Financial Technologies should be a huge beneficiary. And Also has Stake in Singapore Mercantile Exchange.
Analysis: - I am recommending this scrip as MCX IPO is awaiting to enter the markets. Its not entering the market due to a bad economy. Value of MCX as per Fidelity's entry price: (50/9*100)*45.5=Rs.25200 million= Rs 2500 crores(approx.) Share of Financial Tech=64 p.c. Value of Investment in MCX for Financial Tech=64 p.c. of 2500=1600 crores.
The total value of India’s agri produce is equal to US $ 85 billion. Assuming a multiple of 10 times to the commodities futures market the total size should be to the order of US $ 850 billion. It stands at less then US $b 2 billion today.
Financial: - At a PE of 2.02 the stock looks attractive and cheep. Paid a dividend of 100% this year on a FV of 2.
Some Facts - MCX is the biggest market in India dealing in Futures. BOLT is a software designed by Fin Tech.
Risks - A bad economy so Fin Tech is not winning many new orders. MCX IPO can be delayed before it comes in to markets.
Maximum down side - I expect a maximum down side of 340 on this scrip. (This is not a technical view)
Rating - Short term - 5/10 Medium Term - 6/10 Long Term - 8/10
" This is a best scrip only for Long Term Investors"