MCX share price jumps 6% after Motilal Oswal upgrades stock to ‘Buy’, sees 15% upside
₹3,958.00 apiece on the BSE. Motilal Oswal highlighted several near to medium-term drivers of volume growth for MCX such as new product launches – futures & options (shorter duration contracts), continued volatility in key commodity prices amid global uncertainties, and a rise in retail participation in the options market.
“We expect no impact from competition on MCX's volumes, as similar products are currently available on other exchanges. With the technology overhang behind MCX, and near-term potential drivers in place, we see meaningful re-rating potential," Motilal Oswal said.
Also Read: Paytm shares: FPIs, domestic investors, mutual funds raise stake in fintech major despite stock price erosion It upgraded the stock to ‘Buy’ from ‘Neutral’ with a target price of ₹4,300 per share, based on 36x FY26E EPS, implying an upside of more than 15% from Tuesday’s closing price. MCX will be looking to grow volumes driven by new products, such as Steel Bar, Gold Serial contracts, and Power contracts.
Once the future volumes on these products exceed the threshold of ₹800-1,000 crore (one-year average ADTO) options, contracts will also be launched, Motilal Oswal said. Retail participation in the Indian commodities market can improve significantly with the strong technology-based offerings from discount brokers, along with lower ticket-size contracts from MCX.
Moreover, regulatory measures, such as interoperability of margins between stock exchanges and commodity exchanges, allowing partial withdrawal of SGF or determining clients' margin requirements on net positions, if implemented, have the potential to further boost volumes, Motilal Oswal added. Also Read: Kolte Patil share price skyrockets 10%, doubles money in a year; Here's
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