Shares of Multi Commodity Exchange Ltd (MCX) increased by up to 2% on Tuesday, driven by optimistic expert forecasts and expectations of high revenue growth in the near future. The stock reached a high of ₹5,704 per share on the NSE, marking a 1.99% rise from the previous close. On September 16, MCX shares hit a 52-week high of ₹5,718.65, reflecting a 225% gain over the past year. By 12:48 pm on Tuesday, the shares were trading 1.63% higher at ₹5,683.80.
Over the past two years, MCX shares have surged around 350%, driven by several factors including the resolution of previous trading software issues, increased participation from foreign portfolio investors (FPIs), and improvements in turnover and financial performance. In September 2022, the shares were trading around ₹1,250 each.
The latest financial report reveals a 25% Quarter-on-Quarter (QoQ) increase in profit and nearly 30% QoQ growth in revenue, reaching ₹234.4 crore for the June quarter of FY25. Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 30% QoQ to ₹132.6 crore, boosting the stock’s rally.
Another significant factor in the recent rally is MCX’s switch to a new technology platform from TCS in October 2023, replacing the previous system by 63Moons Technologies. This change reduced maintenance costs and improved operational efficiency, enhancing investor confidence.
Foreign portfolio investors have also been active on the MCX platform, with about 100 FPIs participating. MCX has introduced a direct market access (DMA) facility, which, along with regulatory support and increasing FPI involvement, is expected to drive further growth in trading volumes.
