The shares of the mid-cap stock, which specializes in trading commodity derivatives across sectors like bullion, metals, energy, and agriculture, have come into focus by surpassing Rs. 10,000 for the first time, following the new CEO’s emphasis on driving strong volume growth.
With a market capitalization of Rs. 52,467.12 Crores on Wednesday, the shares of Multi Commodity Exchange of India Ltd rose upto 4.4 percent, reaching a high of Rs. 10,309.05 compared to its previous closing price of Rs. 9,871.65.
What Happened
Multi-Commodity Exchange of India Ltd, engaged in trading commodity derivatives across sectors like bullion, metals, energy, and agriculture, has been in the spotlight as it extended its gains for the fourth straight session, and the shares of MCX have crossed the mark of Rs. 10,000 for the first time, trading at a record high level following the new CEO’s emphasis on driving strong volume growth.
CEO Commentary
In a recent interaction with CNBC-TV18, MCX CEO Praveena Rai said that the company is growing at 40% on the operating revenue side and 50% on the EBITDA side, and that the company’s aim is to be capable of processing 10 billion orders per day.
Brokerage Viewpoint
Axis Capital had recently initiated coverage on the stock with a “buy” rating and a price target of Rs. 12,500, also UBS too had raised its target to Rs. 12,000 from Rs. 10,000 earlier, having upgraded it to a “buy” rating.
Financials & Others
The company’s revenue rose by 31 percent from Rs. 286 crores to Rs. 374 crores in Q2FY25-26. Meanwhile, Net profit rose from Rs. 154 crores to Rs. 197 crores in the same period.
The company shows strong financial performance, with a ROCE of 42.9 percent and ROE of 34.3 percent. It has no debt and a perfect Piotroski score of 9, indicating robust fundamentals.
It has delivered impressive profit growth of 25.4 percent CAGR over the past five years and maintains a healthy dividend payout of 46.5 percent, reflecting consistent returns to shareholders.
Multi Commodity Exchange of India Ltd. (MCX) is India’s largest commodity derivatives exchange, providing a platform for online trading, price discovery, and risk management in various commodities like bullion, energy, and agri-commodities.
The company was established in 2003, it was the first to be listed on a national stock exchange in India in 2012, and is regulated by the Securities and Exchange Board of India (SEBI). MCX has a dominant market share in the Indian commodity futures market and is ranked among the top global commodity futures exchanges.
The Commodity Futures Market Share for H1 FY25-26 is largely dominated by MCX, which holds a commanding 98.8% share. NCDX accounts for 1.1%, while others make up just 0.10%.
Looking at the MCX Commodities Futures Turnover for Q2 FY25-26, gold leads with 48.72%, followed by silver at 27.39%. Natural gas contributes 12.83%, crude oil 4.93%, copper 3.93%, zinc 1.31%, aluminum 0.70%, lead 0.12%, index 0.01%, and others 0.05%.
Written by Sridhar J
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