MCX Hits 52-Week High of Rs 7012.75, Analysts Recommend Strong Buy

MCX, a leading commodity exchange in India, has reached a new 52-week high of Rs 7,012.75. This significant surge is attributed to strong financial performance, positive market sentiment, and favorable technical indicators. Analysts have given the stock a ‘Strong Buy’ rating, making it an attractive investment option for those seeking exposure to the commodity market.

CONTENTS:

• • MCX hits 52-week high, strong buy.
  • MCX stock surges, analysts recommend strong buy.
  • MCX stock soars, outpacing earnings growth.
  • MCX shares surge, UBS raises target price.

MCX Hits 52-Week High of Rs 7012.75, Analysts Recommend Strong Buy

MCX hits 52-week high, strong buy

MCX Hits 52-Week High of Rs 7012.75 MCX, a prominent finance and non-banking financial company (NBFC) in India, reached a 52-week high on December 6, 2024. This milestone highlights its robust performance and growth in the market. MarketsMOJO, a leading stock analysis platform, has given MCX a ‘Strong Buy’ rating, making it a top recommendation for investors. Since August and October 2024, MCX has been recognized as a Reliable Performer and a MOJO Stock, respectively.

On December 6, MCX’s stock hit a record high of Rs. 7012.75, outperforming its sector by 7.35%. Over the past three days, the stock has seen a 12.46% rise in returns, reflecting the company’s strong financial performance. It is also trading above its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a positive market trend. Over the past year, MCX has experienced a remarkable growth of 119%, compared to a 17.49% rise in the Sensex.

Given its strong financials and consistent growth, MCX remains a dominant player in India’s finance and NBFC sectors. Its recent performance positions it as a solid investment choice for the future.

MCX Hits 52-Week High of Rs 7012.75  On December 5, 2024, Multi Commodity Exchange of India (MCX) experienced a strong bullish trend, with its share price rising by 2.93%, reaching ₹6,489.75. This performance outpaced both its sector and the broader market, prompting analysts to recommend a ‘Strong Buy’ for the stock. The recent surge in MCX’s stock price is driven by impressive financial results and positive market sentiment, making it a key focus for investors seeking growth opportunities.

MCX’s stock is currently trading at ₹6,489.75, a 3.23% increase from the previous day’s close of ₹6,315.75. The stock has shown strong upward momentum over the past few days, gaining around 4.2% in just two days. Analysts have set target prices for MCX between ₹6,670 and ₹7,600, reflecting the company’s solid performance and favorable market conditions.

Key factors behind the recent performance include:

• Strong Financial Results: MCX reported a significant 72.96% year-over-year growth in net sales for September 2024, highlighting strong operational performance.

• Positive Market Sentiment: Investor confidence has been bolstered by favorable economic indicators and increasing commodity demand.

• Technical Indicators: The stock is trading above its key moving averages (5-day, 20-day, 50-day, 100-day, and 200-day), signaling strong upward momentum and bolstering investor confidence.

From a technical standpoint, MCX’s share price displays bullish signals. It is above all major moving averages, with the Relative Strength Index (RSI) around 49.97, indicating a positive trend without being overbought. Support is at ₹6,060, with resistance at ₹6,870; a breakout above the resistance level could indicate further price increases.

On the fundamental side, MCX has a market capitalization of around ₹31,544 crore, a P/E ratio of 90.9 (indicating high growth expectations), and a modest dividend yield of 0.1%. These factors suggest a solid financial position with a focus on reinvestment rather than high dividend payouts.

In summary, MCX’s strong financial performance, positive market sentiment, and favorable technical indicators make it an attractive option for investors, with analysts setting optimistic target prices. The stock is seen as a promising investment in the commodity exchange sector.

MCX Hits 52-Week High of Rs 7012.75  The Multi Commodity Exchange of India (NSE:MCX) has seen a 3.4% increase in its share price this week, continuing its strong performance. Over the past five years, MCX’s share price has surged by 473%, reflecting significant value creation. Recently, the stock has gained 21% in about three months, adding ₹11 billion to its market cap in the last week alone. However, while the share price has outpaced earnings growth, with an annual growth rate of 9.6% in earnings per share (EPS), this is slower than the 42% annual increase in the stock price.

This suggests that the market currently holds the company in higher regard than its earnings performance alone would indicate. The company’s P/E ratio stands at 92.91, indicating optimistic investor sentiment.

Over the last five years, MCX has delivered a total shareholder return (TSR) of 510%, significantly outperforming its share price return, with dividends playing a major role in this growth. In the past year, the company’s TSR reached 105%, outpacing the five-year TSR of 44%, suggesting growing positive sentiment. Given the strong share price momentum, it might be worth further consideration for investors. However, a closer look at valuation metrics and insider buying trends could provide additional insight before making an investment decision.

MCX shares surged more than 8% on December 6, 2024, crossing the ₹7,000 mark for the first time. The stock has skyrocketed by 500% over the past five years. MCX, India’s leading commodity derivatives exchange, holds a dominant 97% market share in commodity futures for FY 2024-25 and offers a broad range of commodities, including bullion, energy, metals, and agricultural products. It has also established strategic partnerships with domestic and international exchanges.

UBS recently updated its price target for MCX, raising it to ₹8,000 from ₹5,000 in its October report, maintaining a ‘BUY’ rating. The brokerage noted that MCX’s shares have tripled over the past year due to earnings upgrades, with stock prices rising by 198% in the last 12 months. Earnings estimates for FY 2025 and 2026 have been revised upward by 60% and 75%, respectively. Despite the strong growth, the stock is still trading at a relatively high P/E ratio of 40 times the FY 2026 forecast.

UBS highlighted that MCX has substantial potential for growth as its trading community expands, primarily composed of participants from the NSE and BSE.