American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

MCX shares hit record high as UBS sees more upside

by admin June 25, 2025
June 25, 2025
MCX shares hit record high as UBS sees more upside

Shares of Multi Commodity Exchange of India Ltd. (MCX) soared more than 6% on Wednesday to touch a record high of ₹8,731 per share after global brokerage UBS reiterated its bullish stance and raised its price target to ₹10,000 — the most optimistic among brokerages tracked by Bloomberg.

The revised target implies a 15% upside from current levels.

UBS analysts said the market has yet to fully price in the growth potential from MCX’s expanding product portfolio and robust trading volumes.

“We expect key commodities’ average daily value (ADV) to remain strong amid volatility caused by geopolitical uncertainties,” UBS said in a note dated June 24.

New products seen as key growth drivers for MCX

MCX’s trading activity has seen a significant uptick since April.

Futures ADV has climbed about 50% quarter-on-quarter, while option premiums’ ADV has grown by 30%, according to UBS.

The exchange recently received regulatory approval from SEBI to launch electricity derivatives — a product that UBS believes could contribute 3–12% to revenue.

Other products in the pipeline include monthly bullion contracts and index options, which are expected to add further momentum in the near to medium term.

“On new silver options, we expect good traction given the preference for near-to-expiry contracts,” UBS noted.

The brokerage also upgraded its earnings estimates for FY27–FY28 by 13–17% and now expects a 26% compound annual growth rate (CAGR) in earnings for FY26–FY28, driven by operating leverage.

MCX seen holding ground despite NSE competition

UBS addressed investor concerns about market share loss to the National Stock Exchange (NSE), which has launched similar commodity products.

However, it noted that trading volumes on NSE’s commodity derivatives have remained tepid, while MCX’s new technology platform has seen consistent growth in both futures and options.

“We are now less concerned about market share losses as liquidity drives volumes on an exchange,” the analysts wrote.

“Structurally, we believe MCX is well-positioned to deliver secular growth as awareness of hedging commodities increases in the domestic market, specifically for electricity derivatives,” UBS said.

Stock outperformance continues

Wednesday’s gains marked the sharpest intraday rally for MCX since June 9.

Year to date, the stock has jumped nearly 39%, vastly outperforming the Nifty 50 index, which is up just 6.5% in the same period.

ICICI Securities also remains positive on the stock, maintaining an ‘add’ rating and raising its target price to ₹8,800.

The brokerage cited the ongoing surge in trading volumes since the start of FY26 and continued geopolitical tensions driving commodity price swings.

MCX’s market capitalization now stands at ₹43,807.60 crore.

With supportive fundamentals, new product approvals, and strong volume trends, analysts expect MCX to maintain its leadership in India’s commodity trading landscape, even as volatility remains a near-term tailwind.

The post MCX shares hit record high as UBS sees more upside appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Siemens Energy share price analysis and the great turnaround
next post
Europe markets open: stocks up; investors digest Fed, monitor NATO Summit

Related Posts

Interview: Psychedelics changing the course of depression; stocks...

April 9, 2025

Asian markets open: Nikkei, Hang Seng fall amid...

May 16, 2025

USA Rare Earth shares jump after CEO confirms...

October 3, 2025

Pudgy Penguins jumps 23% on ETF proposal linking...

July 10, 2025

Petrobras stock price forms rare pattern pointing to...

June 11, 2025

AbbVie stock analysis: Rinvoq and Skyrizi are big...

October 1, 2024

Consumers await key inflation data as hopes for...

February 14, 2024

Home price growth is back at pre-pandemic levels....

March 28, 2024

XRP breakout timeline narrows as bulls eye $3.00...

June 25, 2025

Nio stock analysis: is this Tesla rival a...

April 24, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Europe bulletin: Manchester synagogue attack aftermath, stocks close higher

      October 5, 2025
    • Evening digest: Trump sets deadline for Hamas, Canada’s slowdown, BTC rebounds

      October 5, 2025
    • Iran executes six people for alleged links to Israel, state media reports

      October 5, 2025
    • US digest: Trump’s Hamas ultimatum, government shutdown stalemate continues

      October 5, 2025
    • Japanese stocks may extend record run as Takaichi win revives ‘Abenomics’

      October 5, 2025

    Categories

    • Business (4,191)
    • Investing (2,958)
    • Latest News (2,080)
    • Politics (1,536)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved