Profit booking was seen in the shares of MCX Ltd on June 24 after they rose over 6.5% in past two sessions while ICICI Securities sees up to 9% upside from the current levels.
On June 24, the stock fell as much 3% to trade at Rs 8,056 and later recovered partially in the morning session to trade at Rs 8,194.
In the past two sessions, the stock has hit its all-time high, led by heavy volumes and optimism around the commodity exchange launching electricity derivatives this year.
Meanwhile, ICICI Securities maintained 'Add' rating on the stock and gave a target price of Rs 8,800.
"Heightened commodity volatility and new product launches provide tailwind to earnings," said the brokerage about MCX.
"Basis the current uptick in volumes, we upgrade our volume estimates for both futures and options. We assume futures Average Daily Trading Volume (ADTV) to be Rs 42,000 crore/Rs 47,500 crore in FY26E/FY27E vs. Rs 40,600 crore in FY26–TD. We assume options’ notional ADTV to be Rs 3.1 lakh crore/Rs 4.2 lakh crore in FY26E/FY27E and premium ADTV to be Rs 4,950 crore/Rs 6,550 crore in FY26E/FY27E vs. notional/premium ADTV of Rs 2.6 lakh crore/Rs 4,260 crore in FY26–TD. We factor 12% CAGR for nonvolume-based cost estimates between FY25-27E," added ICICI Securities.
"We maintain ADD on MCX basis 45x (earlier 40x) FY27E adjusted EPS of Rs 190.9 (earlier Rs 146.6) (ex-income from investment net of taxes) while adding free cash (Investments ex of Margin money, SGF and Regulatory capital) of Rs 211/share. Our target price is revised to Rs 8,800. Our positive stance on MCX is based on strong uptick in volumes since the start of FY26, possible uptick in volumes arising from newer products such as silver monthly options, crude weekly options and electricity futures and the rise in commodity volatility against current backdrop of global geopolitical tensions," said the brokerage.
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