Multi Commodity Exchange of India Ltd., a multibagger stock in an otherwise gloomy year for Dalal Street, is on radar again after the bourse received SEBI approval to invest in a proposed coal exchange company.
Initially, MCX will hold a 100% stake in the subsidiary, which is yet to be incorporated, and may later bring in strategic partners. The company will subsequently apply for a licence with the Coal Controller Organisation of India. MCX plans to invest up to Rs 100 crore to meet the minimum net worth requirements under the draft Coal Exchange Rules.
"MCX as the largest Commodity Exchange in the country proposes to further deepen commodity market infrastructure, by developing a regulated, technology driven market for buying and selling coal. This will be highly beneficial to the ecosystem, as it will be a transparent, standardized digital platform for physical delivery of coal at market-driven fair and robust prices," the company said in a stock exchange filing on Saturday.
Coal, responsible for nearly three-fourth of India's total electricity output, has been back in fashion since the conflicts in Ukraine and the Middle East over the last few year disrupted oil and gas supply. While climate commitments was expected to phase out coal, the uncertainty in the global energy markets and slower pickup in renewables has made India more favuorable to the commodity.
IPO-bound National Stock Exchange of India Ltd. has committed an initial capital infusion of up to Rs 100 crore in its proposed coal exchange.
Operationally, MCX expects trading volumes to remain strong in the March quarter, supported by robust activity that drove an 89% year-on-year earnings growth in the first nine months of FY26. Options-led growth continues to broaden market participation, while MCX maintains over 99% market share across bullion, base metals and energy segments. Gold and silver together account for nearly four-fifths of total turnover, followed by natural gas, crude oil and other commodities.
In a recent note, Morgan Stanley said MCX's business model benefits from elevated commodity price volatility since the outbreak of the Iran war. Noting that exchange volumes typically rise with heightened volatility in commodity prices, the bourse is well-positioned as a defensive play amid broader decline in Indian equities. Analysts expect strong revenue growth in the current risk-off environment.
ALSO READ: India's Coal Imports Likely To Remain Subdued In Near Term
MCX Shre Price Movement
Shares of MCX rose as much as 1.4% to Rs 2,895 on the NSE, compared to a 0.1% rise in the benchmark Nifty 50. The stock is up 140% is the last 12 months and 29% year-to-date.
Eleven out of 13 analysts tracking MCX have a 'buy' fating on the stock, and two suggest a 'hold', according to Bloomberg data. The average of 12-month analyst price target of Rs 2,968 implies an upside potential of 4% over the previous close.
ALSO READ: MCX Shares Hit Record High: Morgan Stanley Lifts Target, Sees 22% Upside
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