Buy MCX; target of Rs 7600: Motilal Oswal

Motilal Oswal is bullish on MCX has recommended buy rating on the stock with a target price of Rs 7600 in its research report dated October 21, 2024.

Broker Research

October 24, 2024 / 16:38 IST

Buy

26 Aug, 2025 12:21

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Motilal Oswal's research report on MCX

MCX posted 73% YoY growth in operating revenue to INR2.9b (5% above our estimate) in 2QFY25. Operating revenue rose 67% YoY in 1HFY25. Revenue growth was driven by a surge in volumes, which jumped 114% YoY. Futures volumes grew 46% YoY to INR17.5t, while options volumes surged 129% YoY to INR126t during the quarter. EBIT stood at INR1.7b (vs. EBIT loss of INR353m in 2QFY24), which was 4% above our estimates. The company reported PAT of INR1.5b (vs. a loss of INR191m in 2QFY24), which grew 39% sequentially and was 7% higher than our estimate. For 1HFY25, MCX’s PAT was INR2.6b (vs. INR6m in 1HFY24). We raise our FY25/26 EPS estimates by 10%/11%, factoring in the surge in volumes witnessed in 1HFY25, offset by a rise in SGF contribution. We reiterate our BUY rating on the stock with a one-year TP of INR7,600 (premised on 44x Sep’26E EPS).

Outlook

We raise our FY25/26 EPS estimate by 10%/11% factoring in the strong surge in volumes witnessed in 1HFY25. This will be offset by a slight increase in the expected SGF contribution. We reiterate our BUY rating with a one-year TP of INR7,600 (premised on 44x Sep’26E EPS).

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