UBS has reaffirmed its ‘Buy’ rating on Multi Commodity Exchange (MCX) with a target price of ₹10,000, citing strong growth catalysts from new product launches, rising retail participation, and strategic focus on liquidity enhancement. The stock is currently trading at ₹7,983, offering significant upside potential.
UBS highlights key growth drivers for MCX
UBS identified three major takeaways from the recent investor call. First, MCX is focused on expanding its product portfolio, particularly with cash-settled index options, which are expected to attract higher participation. Second, there is a notable increase in retail activity, especially in popular bullion contracts like Gold Ten, indicating rising market depth. Third, MCX is actively pursuing initiatives to improve liquidity in electricity derivatives, including incentive-driven schemes aimed at broader participation.
MCX stock split and valuation outlook
The company’s board has also approved a stock split in a 1:5 ratio, which is expected to improve accessibility and trading volumes among retail investors. UBS believes the combination of product innovation, retail momentum, and market development initiatives positions MCX strongly for long-term growth.
Brokerage view summary:
| Brokerage | Rating | Target Price | Key Takeaways |
|---|---|---|---|
| UBS | Buy | ₹10,000 | Positive on index options, retail in bullion, and electricity derivatives liquidity push |
Disclaimer: This article is based on brokerage reports and is for informational purposes only. It does not constitute investment advice. Investors should consult their financial advisors before making investment decisions.
