3 hours Ago
Shares of Multi Commodity Exchange (MCX) of India Ltd. will be in focus on Tuesday, October 22, after brokerage firm UBS increased its price target on the stock. NSE UBS maintained its "buy" rating on the stock but raised its price target to ₹8,000 from ₹5,000 earlier.
The revised price target from UBS implies a potential upside of 21% from Monday's closing levels. The brokerage wrote in its note that the shares of MCX have tripled in the last one year, led by earnings upgrades. The stock is up 198% in the last 12 months.
It also said that the earnings estimates for MCX for financial year 2025 and 2026 have gone up by 60% and 75% respectively. Yet, the stock is trading at 40 times financial year 2026 price-to-earnings multiple. "We believe MCX's trading community is largely a subset of NSE and BSE participants, thus having significant scope for increased participation on MCX," UBS wrote in its note.
The exchange is set to launch new products like monthly gold options on November 11, weekly index options and other commodity-related futures and options, which can act as growth catalysts going forward, UBS wrote in its note, adding that it expects these launches to be expedited once the new CEO joins in the upcoming weeks. Praveena Rai has been appointed as the new MD & CEO of MCX, after the five-year term of MCX's earlier CEO PS Reddy ended in May this year. The appointment is subject to approval from shareholders.
Post the September quarter results from MCX, UBS has raised its financial year 2025 and 2026 earnings estimates by 26% and 30% respectively. MCX reported a 22% sequential growth during the quarter, while its net profit increased by 38% when compared to the June quarter. Out of the 11 analysts that have coverage on MCX, five of them have a "buy" rating, four say "hold" and two have a "sell" rating on the stock.
Shares of MCX ended 0.6% higher on Monday at ₹6,600..
