MCX - New Products To Be The Key Growth Drivers: Motilal Oswal

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Motilal Oswal Report

We expect Multi Commodity Exchange of India Ltd. to deliver a revenue/Ebitda/profit after tax compound annual growth rate of 28%/205%/157% over FY24-26, led by a 47% CAGR in options volumes.

We highlight several nearto medium-term drivers of volume growth:

new product launches – futures and options (shorter duration contracts);
continued volatility in key commodity prices (gold, crude oil and natural gas) amid global uncertainties; and
a rise in retail participation in the options market.

We expect no impact from competition on MCX's volumes, as similar products are currently available on other exchanges. With the technology overhang behind MCX, and near-term potential drivers in place, we see meaningful re-rating potential.

We upgrade the stock to Buy (from Neutral) with a target price of Rs 4,300 (based on 36 times FY26E earnings per share).

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Motilal Oswal MCX Update.pdf

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Also Read: Kolte-Patil - Unlocking The Growth Potential: Motilal Oswal Initiates Coverage With A Buy

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