ICICI Direct has given Buy recommendation for Multi Commodity Exchange with a target price of Rs. 1600 in its research report issued on May 18, 2022
ICICI Direct’s research report on Multi Commodity Exchange
MCX is the leader in commodity derivatives exchanges in India with ~94% market share in terms of commodity futures turnover. It has ~100% market share in precious metals & base metals and energy • Presence in various commodities offers healthy diversification.
Factoring in timelines for launch of spot exchanges, we lower our multiple to value MCX at ~33x core FY24E EPS and net cash. Thus, we lower our target price from Rs 2000 to Rs 1600.