2 weeks ago
UBS upgrades MCX to Buy, target raised to Rs 3,800
A big financial company called UBS gives advice about stocks.
It looked at a company called MCX, which runs a market where people trade things like gold and oil.
UBS now says people should buy MCX stock.
It thinks the stock will become more valuable, so it raised its target price for the stock.
UBS believes MCX will earn more money in the next few years.
The money MCX makes from trading fees every day has become steadier.
Also, MCX's stock price went down recently, making it cheaper to buy.
New rules from the government could make the commodity market bigger and stronger.
UBS thinks that will help MCX in the future.
That is why UBS changed its mind and said people should buy MCX stock.
UBS upgraded MCX stock to 'Buy' and raised its price target to Rs 3,800 from Rs 3,600.
The brokerage raised its EPS estimates for FY27, FY28, and FY29 by 4 per cent, 8 per cent, and 9 per cent, respectively.
UBS cited stabilising transaction fee revenue, lower valuations after a recent correction, and proposed regulatory changes as reasons for the upgrade.
MCX's share price had fallen 15 per cent over the past three months, with volumes moderating after a strong Q4 FY26.
UBS expects high volatility in key commodities to persist on an uncertain macro environment, benefiting MCX.
- Who
- UBS, a global brokerage, and MCX, the commodity exchange whose stock it rates.
- What
- UBS upgraded MCX's stock rating to 'Buy' and raised its price target to Rs 3,800 from Rs 3,600, while increasing EPS estimates for FY27, FY28, and FY29.
- Where
- India's commodity market, where MCX operates.
- When
- Recently, with UBS citing August month-to-date data showing transaction fee revenue run-rate at Rs 9.9 crore.
- Why
- Due to stabilising transaction fee revenue, lower valuations after a 15 per cent share price correction, and proposed regulatory changes expected to deepen the commodity market.
Key facts
- Brokerage
- UBS
- Rating action
- Upgraded to 'Buy'
- Price target
- Rs 3,800 (raised from Rs 3,600)
- EPS estimate increases
- FY27: +4%, FY28: +8%, FY29: +9%
- Valuation
- 40 times 1-year forward PE, a 15% discount to the three-year average
- Share price change
- Down 15% over the past three months
- Average daily transaction fee revenue
- Stabilised at Rs 9.5-10 crore; August run-rate at Rs 9.9 crore
- New target price basis
- 44 times Sep-28E PE, from 50 times FY28E PE previously
Quotes
UBS Research Analyst
UBS research analyst explaining market outlook
“"We believe this will structurally deepen the commodity market and become an important medium‑term growth catalyst for MCX."”
businesstoday.in
“"Our new target price is based on 44 times Sep‑28E PE, close to the three‑year average, from 50 time FY28E PE previously."”
businesstoday.in
Sources
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