MCX share price: Shares of India’s largest commodities bourse — Multi Commodity Exchange of India (MCX) — rallied nearly 2.5% to a fresh record high on Tuesday, marking its third consecutive day of gains. With this, the stock has extended its gains so far in June to 20%, building on the three straight months of rally seen between March to May.
The rally in June follows the Securities and Exchange Board of India’s approval for MCX to launch electricity derivatives. According to a Bloomberg report today, June 17, MCX will introduce electricity futures later this year, which drove the stock higher.
By launching the electricity derivatives, MCX is seeking to capitalise on demand for instruments, helping power producers, distributors, and companies manage changes in electricity prices.
MCX share price hit a fresh 52-week high of ₹8,021.50 on the NSE, recording a 2.47% gain over its last close. It has risen almost 50% since March. Meanwhile, it has delivered multibagger gains of 102% in the last one year alone.
MCX earnings snapshot
MCX, which holds a market share of about 98% in terms of the value of commodity futures contracts traded as of the financial year 2024-25 (FY25), posted a strong Q4 performance, which has kept the interest of investors in the stock intact.
MCX reported a Q4FY25 net profit of ₹135 crore, a 54% YoY increase compared to ₹87.87 crore in the same period last year. Its revenue from operations jumped 60.68% YoY to ₹320 crore, compared to ₹199.45 crore a year ago. The earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter stood at ₹189.35 crore, compared to ₹216.1 crore in Q3FY25 and ₹120.33 crore in Q4FY24.
Total expenses for the quarter, however, saw a sharp spike of 64% YoY to ₹152 crore, primarily due to higher technology costs.
In terms of trading volumes, options’ notional average daily turnover (ADT) surged to ₹220,936 crore, up 94% YoY and 7% QoQ. However, the options’ premium ADT for the quarter fell to ₹3,288.63 crore from ₹3,613.14 crore in the previous quarter, though it remained significantly higher than ₹2,038.84 crore a year ago, as per the company’s Q4 earnings’ filing.
Can MCX shares rise more?
Anshul Jain, Head of Research at Lakshmishree Investments, believes there is more room for growth in MCX stock, albeit at a slower pace.
“MCX has rallied 76.88% over the past 11 weeks, making it highly extended from short-term moving averages. However, as long as the stock holds above the recent swing low of 7372, the bullish momentum is expected to continue, albeit at a slower pace,” Jain opined.
A breach below 7372 will trigger a mean reversion pullback, the Lakshmishree analyst said, adding that until then, the MCX stock remains in strong hands and is likely to inch toward the next resistance near 8450.
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