UBS has reiterated its ‘Buy’ rating on Multi Commodity Exchange (MCX) while reducing its target price to ₹7,250 from ₹7,800, citing slightly subdued quarterly volumes. The brokerage noted that the March premium-to-notional ratio normalized to 1.5%, suggesting a return to structural stability in premium turnover.
UBS expects a quarter-on-quarter revenue decline of around 5% in Q4 but remains constructive on MCX’s long-term prospects. It pointed to continued volatility in key traded commodities and the introduction of new products as key catalysts for future growth.
While acknowledging near-term softness, UBS believes MCX is well-positioned to benefit from structural growth trends in commodity derivatives, especially with sustained regulatory clarity and innovation in contracts.
