MCX shares hit fresh record high as UBS increases target price for the stock to Rs 5,000

MCX shares hit a fresh record high of Rs 4,324.90 on the NSE today after brokerage firm UBS increases its target price for the stock to Rs 5,000.

Shares of Multi Commodity Exchange of India Ltd. (MCX) reached a new record high of Rs 4,324.90 on the National Stock Exchange (NSE) today. This surge follows an upgrade from brokerage firm UBS, which raised its target price for the stock to Rs 5,000.

UBS has assigned a “Buy” rating to MCX, citing a robust performance in the first quarter and an even stronger outlook for the second quarter. The firm has also increased its earnings estimates for FY25 and FY26 by 10% and 16%, respectively.

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UBS analysts believe that the market has not fully priced in the benefits of operating leverage associated with rising trading volumes. Additionally, they see potential upside from new product launches, such as monthly bullion contracts and weekly expiries.

UBS justifies the high valuation multiple for MCX by pointing to a strong growth outlook and a supportive regulatory environment.