Shares of exchange platform MCX Ltd. may rise as much as 29% over the next 12 months, according to brokerage firm UBS, as it has its near-term growth drivers in place.
The brokerage maintained its "buy" recommendation on the stock and raised its price target to ₹3,000 from the earlier target of ₹2,100. The revised target implies a potential upside of 29% from Tuesday's closing levels.
UBS stated that the MCX's new technology platform is stabilising and that newer products will drive the near-to-medium-term growth for the company.
MCX launched its new web-based commodity derivatives platform (CPD) last month after several delays. This launch came after Sebi's Technical Advisory Panel gave its go-ahead to MCX's proposal to shift to a new trading platform.
Earlier, the markets regulator had asked to put on hold the proposed go-live of its new commodity derivatives platform planned for the first week of October.
The brokerage house also said that competition concerns for MCX are overdone now.
It has raised its financial year 2025 and 2026 estimates for MCX by 15% and 16% respectively to factor in strong options ADV (Average Daily Value) trend, new product contributions and higher operating leverage from the newer platform.
MCX shares are trading at 31 times one-year forward price-to-earnings, adjusted for the one-off costs. The stock has risen 50% over the last six months.
Shares of MCX are trading at the day's high, currently trading 1.9% higher at ₹2,375.
(Edited by : Hormaz Fatakia)
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