Buy MCX; target of Rs 6500: Motilal Oswal

Motilal Oswal is bullish on MCX recommended buy rating on the stock with a target price of Rs 6500 in its research report dated September 16, 2024.

Broker Research

September 17, 2024 / 14:24 IST

Buy

Motilal Oswal's research report on MCX

MCX plans to grow volumes by launching new products, such as serial contracts, index options, 10g monthly gold futures, cotton seed wash oil, crude sunflower oil contracts and many more in the pipeline. After future volumes on these products exceed the volume threshold of INR10b, MCX will launch options contracts. For MCX, retail participation has increased to ~0.9m participants. Retail participation can strengthen further with new product launches, a change in the transaction rate structure (under true-to-label charges regulation) to make it favorable to traders, strong technology-based offerings from discount brokers, and lower ticket-size contracts from MCX.

Outlook

We expect MCX to deliver a CAGR of 31%/ 154%/119% in revenue/EBITDA/PAT over FY24-27E, fueled by a 56% CAGR in options ADTVO. We reiterate our BUY rating on the stock with a TP of INR6,500 (premised on 42x Sept’26E EPS).

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