MCX is a key stock in focus this morning. The share price of MCX is up nearly 4% and hit a fresh 52-week high on the big upgrade from UBS.
UBS maintains Buy on MCX and raised the target price to Rs 10,000 per share from Rs 7,000 a share earlier. This massive 42% upgrade in the share price is on the back of strong volume outlook and product diversification.
UBS on MCX: New products to boost earnings
According to UBS, new products such as electricity derivatives, monthly bullion contracts and index options (in the pipeline) may further support near- to medium-term growth. Considering this, they have increased the FY27-FY28 EPS estimates by 13-17%. They expect “a 26% earnings CAGR for FY26-28 based on operating leverage.”
UBS on MCX: Street not pricing in growth potential
UBS highlights that they are “meaningfully ahead of consensus and believe expectations may increase by 15-20%, similar to last year.” MCX is trading at around 42x FY27 PE and they believe the “market is not fully pricing in new products’ growth potential and operating leverage benefitting from higher volume.”
According to UBS, MCX recently announced the launch of electricity derivatives and introduced monthly silver options. Their initial analysis indicates a potential revenue contribution of 3-12% from electricity derivatives. On new silver options too, they expect good traction given the preference for near-to-expiry contracts. As a result, they expect the new product launches to support near- to medium-term growth.
UBS on MCX: Support from sharp rise in bullion prices
The sharp rise in bullion has helped the company maintain robust ADV. Option premium ADV have also been healthy, up 30% QoQ. Overall, UBS estimates trading revenue growth of about 34-35% QoQ and a PAT increase of around 50% on Q4 seasonal expenses further supporting the big upgrade.
MCX share price performance
Overall, the MCX shares price has been delivering steady gains. It has surged 8% in 5 days, 32% in 1 month and 36% in 2025 so far. The 1-year returns exceed 100%. It’s 52-week high is at Rs 8,602 per share. The stock hit a fresh high in early trade today.