23 hours Ago
Shares of Multi Commodity Exchange of India Ltd. (MCX) opened lower on Wednesday, April 2. The stock opened at ₹5,249.
95 and hit an intraday low of ₹5,185.95. However, it recovered by 2% from the day's low and was trading with gains at ₹5,281.
Global brokerage firm Morgan Stanley has an 'Underweight' recommendation on MCX, with a price target of ₹3,400 per share. This target implies a potential downside of 35% from Tuesday's closing levels. MCX's transaction revenue for the fourth quarter (Q4) stood at ₹289 crore, down 4% compared to the previous quarter but a 60% increase year-on-year.
This was slightly below Morgan Stanley's estimate of ₹293 crore. The Average Daily Transaction Revenue (ADTR) for Q4 was ₹3.9 crore, slightly lower than Morgan Stanley's estimate of ₹3.
95 crore. For March 2025, ADTR settled at ₹3.89 crore after a strong start to the month.
According to Morgan Stanley, many investors expect regulatory approval for the launch of weekly options, which could provide upside potential for MCX. The brokerage has estimated an ADTR of ₹4.02 crore for the financial year 2025-26 (FY26) and ₹4.
19 crore for 2026-27 (FY27). Meanwhile, Swiss investment bank UBS has maintained a 'Buy' rating on MCX but lowered its price target by 7% from ₹7,800 to ₹7,250. The foreign brokerage wrote in its note that trading volumes indicate a slightly weaker quarter but are expected to improve.
Overall, it estimates a 5% decline in Q4 revenue, compared to the previous quarter. Shares of MCX settled 1.54% lower on Tuesday at ₹5,230.
The stock is down 17% so far in 2025..
