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2w ago

MCX Shares Hit Record High After UBS Lifts Target to Rs 10,000

Robust volumes following SEBI approval of electricity derivatives underpin brokerages’ bullish outlook

MCX shares up 113% in 1 year, 560% in 5 years; stock still a buy?
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Overview

  • UBS raised its MCX target price from Rs 7,000 to Rs 10,000, maintaining a buy rating and citing favourable commodity volatility and new product launches.
  • Since April, MCX’s average daily futures traded value has climbed about 50% quarter-on-quarter and option premium ADV by roughly 30%, reflecting heightened market participation.
  • Electricity derivatives launched in early June under SEBI and CERC approvals may contribute between 3% and 12% of revenue by FY28 according to UBS’s initial analysis.
  • ICICI Securities boosted its MCX target to Rs 8,800 and upgraded valuation multiples on expectations of sustained volume growth from new silver and crude options.
  • Silver mini options posted notional turnovers of Rs 17,300 crore on June 18 and Rs 38,200 crore on June 19 after MCX shifted to monthly expiry contracts.