MCX has maintained its dominant position with ~90% market share. We see value in MCX based on (1) Embedded non-linearity, (2) Favorable regulatory environment, and (3) Super-normal growth prospects with start of options trading and new product launches (Indices). We estimate revenue/PAT CAGR of 15/16% for FY18/19E. Maintain BUY with TP of Rs 1,322 implying a P/E of 40x FY19E EPS. MCX delivered poor performance in 1Q; revenue was down 5.5% QoQ to Rs 592mn, below our expectation of Rs 607mn. Drop in revenue was led by 3.4% fall in ADTV to Rs 188bn and 0.5% fall in realisation. Bullion (29% of ADTV), which was witnessing continued stress in trading volume post demonitisation, recovered 2.1% QoQ. Management expects ADTV to increase gradually after successful implementation of GST in July-17.