MCX Surges 4%, Hits New 52-Week High on UBS Upgrade

MCX shares have jumped 4% and hit a 52-week high after UBS upgraded its target price to Rs 10,000 per share. UBS expects strong volume growth and product diversification, including new products like electricity derivatives and monthly bullion contracts, to support earnings. The sharp rise in bullion prices has also helped maintain robust ADV, with trading revenue growth estimated at 34-35% QoQ and PAT increasing by around 50%.

Multi Commodity Exchange (MCX) shares have surged by 4% and reached a 52-week high after UBS raised its target price to Rs 10,000 per share [2]. The upgrade reflects UBS's optimistic outlook on the company's future performance, driven by strong volume growth and a diversified product portfolio.

UBS highlighted several key factors contributing to this bullish sentiment. The brokerage noted that "blocks are in place" for MCX, citing favorable market dynamics and new product launches. The volatility in key commodities' prices is expected to drive volume growth, with MCX's trading volume showing robust performance since April [2].

The brokerage emphasized the improving pace and visibility of new product launches. MCX has recently introduced electricity derivatives and monthly silver options, which are expected to contribute significantly to the company's revenue. UBS conservatively estimates that electricity derivatives may contribute about 3% of revenue in FY28, with potential for upside [2].

The sharp rise in bullion prices has also supported MCX's trading revenue, with the brokerage estimating growth of about 34-35% QoQ and a PAT increase of around 50% due to seasonal expenses [2]. UBS expects a 26% earnings CAGR for FY26-28, based on operating leverage and is meaningfully ahead of consensus [2].

Institutional investors and hedge funds have also shown interest in MCX, with several major players increasing their stakes in the company. These developments underscore the growing confidence in MCX's ability to capitalize on the favorable market conditions and its expanding product offerings.

References:
[1] https://www.marketbeat.com/instant-alerts/ubs-group-reiterates-neutral-rating-for-silver-standard-resources-nasdaqssrm-2025-06-24/
[2] https://www.ndtvprofit.com/amp/markets/mcx-gets-target-price-hike-from-ubs-amid-robust-trading-volume-new-product-launches