Global brokerage UBS upgraded Multi Commodity Exchange of India (MCX) to a Buy rating from Neutral, raising its 12-month price target to Rs 3,800 from Rs 3,600. The upgrade follows a recent 15% price correction from its May peak, which UBS noted leaves the stock trading at an attractive valuation of 40x 12-month forward price-to-earning, a discount of more than 10% to its three-year average.
Given this strong valuation support, resilient volumes, and positive regulatory developments, the global brokerage raised its earnings per share estimates for MCX by 4%, 8%, and 9% for FY27, FY28, and FY29, respectively. The revised price target implies an upside potential of over 28% from its previous closing price of Rs 2,962, based on a 44x September 2028 estimated PE.
