Regulatory tailwinds like Institutional participation, Indices (cash settled) and new options contracts will boost volumes and increase depth. Globally Institutions account for ~50% of the total derivatives volume. MCX's focus on improving the physical delivery mechanism and local price discovery for key commodities will provide a platform for long term sustainable growth. We estimate revenue/EBITDA/PAT CAGR of 21/45/26% over FY19-22E. The stock trades at P/E of 27.0/21.5 FY21/22E EPS, which is reasonable, considering healthy growth, tight cost control, RoIC of ~50% and huge cash (~22% of Mcap). Risks include regulatory delays, increase in competition and drop in commodity volatility. We maintain BUY on MCX based on in-line revenue and margin beat in 3QFY20. Market share (94%) is steady despite rise in competition. Embedded non-linearity and cost control is leading to margin expansion. Regulatory tailwinds, healthy growth in unique client codes (UCC), launch of Indices and increased volatility will aid volume growth. We assign 30x to core Dec-21 PAT and add net cash (20% discount) to arrive at TP of Rs 1,370.