On Wednesday, December 31, shares of Multi Commodity Exchange of India (MCX), the nation’s top commodity derivatives exchange, increased 3% to the day’s high of ₹11,198 a share, extending its winning run to a second straight session. The increases followed rumors in the media that Morgan Stanley had given the business a positive outlook.
Brokerage Upgrade Boosts Shares
CNBC TV-18 reports that the international brokerage has become more optimistic about MCX, increasing its rating to “Equal weight” and lifting its target price from ₹6,710 to ₹11,135. Mint was unable to independently confirm this information.
According to the study, the company’s average daily transaction income increased significantly as a result of increased pricing action across commodities.
Earnings Projections
Morgan Stanley has increased its earnings per share (EPS) projections by 15% for FY26, 20% for FY27, and 24% for FY28 since it anticipates that this trend will continue in the next months.
MCX shares are now selling at 50x FY27E EPS and 47.5x FY28E EPS, according to the brokerage. The company would trade at 35x price-to-earnings (P/E), or 5% over its long-term average, if the current average daily transaction revenue (ADTR) is maintained at ₹104 million throughout FY27E–FY28E.
Stock Performance in 2025
The price of MCX shares increased by 80% in 2025.
Despite having a slow start to the year and finishing the first two months in the negative, the company’s shares gained speed in the following months and broke all previous records. Since mid-November, MCX shares have consistently traded over the ₹10,000 threshold.
Consistent Growth Trend
MCX shares have increased 80% so far in 2025, despite profit booking along the road. This is the stock’s third straight year of gains. This year, it has become one of the best-performing capital market equities.
Gold and Silver Trading Impact
The substantial growth in gold and silver trading volumes in recent months has been the driving force behind the robust surge in MCX shares.
More traders and investors have entered the market to hedge risks, speculate on price swings, or purchase precious metals as a result of the ongoing increase in gold and silver prices. Expectations of an improvement in the company’s sales forecast have therefore increased.
Bullion Contracts and Revenue Diversification
Since switching to monthly expiration, MCX’s bullion contracts have grown significantly, increasing popularity and contributing to the company’s revenue mix diversification.
By Q4FY27E, analysts at HDFC Securities anticipate that bullion would account for almost 40% of the overall premium.
