Shares of MCX Ltd rose 2.5% on October 26 as Jefferies gave the stock 'Buy' rating and the global brokerage gave target price of Rs 4,000, which implies up to 32% upside for the stock.
Gold bullion accounts for only about 40% of MCX's transaction revenue, Jefferies said. The other 60% comes from energy contracts, where average daily turnover in September and October has been ahead of the brokerage's estimates.
"MCX's share price is down 12% over last month, consistent with gold price correction. This provides a good opportunity to BUY considering bullion is only 40% of transaction revenue vs 60% from energy, where Sep-Oct'26 ADTO (average daily turnover) is ahead of estimates," said Jefferies.
If this pace holds through the third quarter, it could lift MCX's FY27 net profit estimates by 4–5%, Jefferies said. The brokerage called the stock a hedge against crude volatility unlike global peers and said it trades at 36x FY28e EPS with 26% 3-year EPS CAGR.
At 11:35 am on October 26, MCX shares were trading 2.5% higher at Rs 3,094.6 apiece.