MCX - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Investment Rating: 4.3

📈 Fundamental Analysis: Multi Commodity Exchange of India Ltd. (MCX)

MCX is India’s leading commodity derivatives exchange, and its financial metrics reflect a high-quality, asset-light business with strong profitability and zero debt. Despite a high P/E, its PEG ratio and return metrics make it a solid long-term candidate.

Metric Value Implication

Market Cap ₹39,984 Cr. Large-cap; dominant position in commodity trading

Stock P/E 71.4 High — but in line with industry PE

PEG Ratio 1.38 Reasonable — valuation aligns with earnings growth

ROE / ROCE 34.3% / 42.9% Excellent — strong capital efficiency

Dividend Yield 0.38% Modest — bonus for long-term holders

Debt-to-Equity 0.00 Zero debt — pristine balance sheet

EPS ₹110 Strong earnings base

Profit Growth (QoQ) -15.6% Slight dip — but YoY growth remains strong

📉 Technical & Trend Analysis

Current Price: ₹7,840

DMA 50 / DMA 200: ₹7,796 / ₹6,412 — trading near 50 DMA, well above 200 DMA

RSI: 41.6 — approaching oversold zone

MACD: -13.9 — bearish momentum

Volume: Above average — possible accumulation

✅ Is It a Good Long-Term Investment?

Yes. MCX offers a rare combination of high ROE/ROCE, zero debt, and strong earnings power. The PEG ratio is reasonable, and its dominant market position in commodity trading provides long-term tailwinds. The only caution is the high P/E, which is justified only if growth sustains.

🎯 Ideal Entry Price Zone

Buy Zone: ₹7,200–₹7,500

Near technical support and RSI oversold zone

Accumulate gradually if PEG remains below 1.5 and ROE stays above 30%

Entry ideal during broader market dips or sector rotation

🧭 Exit Strategy / Holding Period (If Already Holding)

If you're already invested

Holding Period: 3–5 years — to benefit from increasing commodity volumes and tech upgrades

Exit Strategy

Partial Exit near ₹9,000–₹9,100 if valuation stretches (P/E > 80)

Hold if ROE stays above 30% and PAT growth continues above 20% YoY

Reassess if PEG rises above 2 or regulatory changes impact volumes

Would you like a comparison with other financial infrastructure plays like BSE or CDSL to explore diversification within exchanges and clearing platforms?

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