Up 135% in six months! UBS sees more upside in this multibagger stock; here's why
MCX shares are trading at 40 times higher one-year forward price-to-earnings, which UBS believes is justified on strong growth outlook.
Shares of Multi Commodity Exchange of India Ltd. (MCX), which have rallied 135% in the last six months, gained another 2% in Monday's trade after global broking firm UBS said the rally is not over yet.
UBS has maintained a 'Buy' rating on the MCX stock and also revised its target price to ₹4,300 from ₹3,000 per share earlier, citing strong growth to flow into profitability in the current quarter. The revised target implies a potential upside of nearly 10% from Friday's closing levels.
The brokerage said that MCX's new product launches will be a key driver for near to medium-term growth.
Volatility will support both volume and realisation for options, UBS said in its latest note to clients. The brokerage also expects compounded earnings of 20% in FY24 to FY26, which is adjusted for one-offs in FY24.
MCX shares are trading at 40 times higher one-year forward price-to-earnings, which it believes is justified on strong growth outlook.
The stock was trading 0.84% higher at ₹3,615 apiece on NSE today. The multibagger stock has gained 14% so far this year and is up over 160% in the last one year.
The Multi Commodity Exchange of India is an exchange and data platform on which commodities such as gold and silver are traded.
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