Multi Commodity Exchange of India Ltd (MCX) shares experienced a significant downturn, falling 5.53% in Friday's trading session to hit a low of Rs 2,985. This latest dip means the stock has corrected 14.22% from its all-time high of Rs 3,479.80, which it touched just last week on May 21.
MCX Financial Performance Highlights
The correction comes despite strong financial results reported by MCX. According to Motilal Oswal Financial Services Ltd (MOFSL), MCX posted an operating revenue of Rs 890 crore for the quarter, marking a substantial 205% year-on-year (YoY) increase and a 34% quarter-on-quarter (QoQ) growth. This robust performance was primarily driven by healthy expansion in bullion and energy contracts.
For the full fiscal year 2026 (FY26), MCX's revenue surged 107% YoY to Rs 2,300 crore. Operating expenses (opex) grew 70% YoY and 31% QoQ to Rs 220 crore, with staff costs remaining flat YoY at Rs 46.1 crore and other expenses increasing 108% YoY to Rs 180 crore.
The company's Q4 EBITDA stood at an impressive Rs 670 crore, a roughly 4.2x increase YoY and 1.3x QoQ. FY26 EBITDA reached Rs 1,650 crore. MCX also reported a Profit After Tax (PAT) of approximately Rs 530 crore for the quarter, up 291% YoY and 32% QoQ, which was in line with expectations. For FY26, PAT rose 138% YoY to Rs 1,330 crore.
Analyst Outlook: Buy or Neutral?
Despite the strong financials, the recent stock correction has prompted varied opinions among market analysts. Gaurav Sharma of Globe Capital maintained a bullish stance on MCX. "The kind of momentum we've seen off late from in base metals, this is actually culminated into the quarterly numbers. I find this as an opportunity to enter. Any price close to Rs 2,800 is a good place to actually a decent entry point for those who have missed the bus previously," Sharma told Business Today.
However, MOFSL holds a more cautious view. While acknowledging MCX's efforts to strengthen its product pipeline across metals, energy, and commodity indices, particularly focusing on commodity index futures and options, the brokerage has adjusted its future estimates. MOFSL cut its Earnings Per Share (EPS) estimates for FY27 and FY28 by 6% and 4% respectively, citing current volume trends and higher costs.
MOFSL reiterated a "Neutral" rating on MCX stock, setting a one-year target price (TP) of Rs 2,850, premised on 40x FY28E EPS. This suggests that while the company's long-term prospects remain solid, the immediate upside might be limited according to their assessment.
Disclaimer: This article provides general market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.