Jefferies has initiated coverage on Multi Commodity Exchange of India Ltd (MCX) with a Buy rating, setting a price target of Rs 3,600 per share based on 45x Jun-28e EPS, implying 27% upside from the prior close of Rs 2,841.
Stating that participation in commodity derivatives is only a 1/5th of NSE's individual equity derivative traders, the brokerage described MCX as “well-placed to benefit” from rising penetration in India’s underdeveloped commodity derivatives market, noting that the exchange enjoys a near-monopoly across most non-agri contracts.
