MCX Gains Momentum on UBS Upgrade and New Product Launches

Multi Commodity Exchange (

) is in the spotlight after a major upgrade from UBS, which raised its target price to ₹10,000 per share from ₹7,000, a 42% increase. The brokerage cited strong volume growth, product diversification, and new launches like electricity derivatives and monthly bullion contracts as key growth drivers. UBS expects these initiatives to boost earnings with a projected 26% CAGR in FY26–28, driven by operating leverage and higher trading volumes. Electricity derivatives alone could contribute 3–12% to revenue, while silver options are expected to gain traction due to high demand for near-expiry contracts. The exchange has also seen robust average daily volumes (ADV), supported by rising bullion prices and a 30% sequential rise in option premiums. Trading revenue is estimated to grow 34–35% QoQ, with profit (PAT) up around 50%. With MCX shares hitting a 52-week high and delivering over 100% returns in the last year, the stock appears well-positioned to benefit from its expansion into new products and growing market participation. The company’s focus on innovation and operational efficiency bodes well for sustained growth in the coming quarters.