UBS raised its price target for MCX to ₹10,000, citing rising commodity volatility and strong product pipeline visibility
Shares of Multi Commodity Exchange of India surged around 6% and hit a record high of ₹8,711.50 on June 25 after global brokerage firm UBS rolled out bullish views for the company, also lifting its price target for the stock. UBS also reiterated its ‘buy’ call on the stock, with a higher price target of Rs 10,000, the highest ever for MCX. The target assigned by UBS reflects a stark jump from the previous ₹7,000 suggesting bullishness over long-term prospects.
The new target implies a potential upside of nearly 22% from the stock’s last closing price on, making UBS’s valuation the most bullish on the Street. In comparison, HDFC Research has a target of ₹9,040, while ICICI Securities has pegged the stock at ₹8,800.
UBS attributed its upbeat view to several factors. Topping them all is the rise in volatility across key commodities, which is expected to drive volume growth on the exchange. The brokerage also noted improved clarity and momentum around the launch of new products.
Backing its optimism with data, UBS highlighted a strong performance in the first quarter, where futures average daily volumes surged by nearly 50% quarter-on-quarter. Options premiums, too, registered a healthy 30% increase during the same period.
Reflecting this positive trend, UBS has also upgraded its earnings estimates for MCX by 13–17% for FY27 and FY28.
With market activity picking up and the exchange showing encouraging operational metrics, investor attention is likely to remain fixed on MCX in the days ahead.
In recent times, MCX shares have also been riding high, clocking in over 66% returns in the last three months alone. A surge in gold, silver and other metal prices have worked well for MCX, lifting volumes at its platform.
Trading volumes in the counter were also quite strong as 10 lakh shares already changed hands thus far, higher than the one-month daily traded average of nine lakh shares.