Multi Commodity Exchange of India Limited (MCX) AI Stock Analysis

• Market Cap: ₹590.26B
• Dividend Yield: 0.28%
• Average Volume (3M): 32.88K
• Price to Earnings (P/E): 35.3
• Beta (1Y): 1.41
• Revenue Growth: 49.22%
• EPS Growth: 100.59%
• Country: IN
• Employees: 355
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 15.70
• Shares Outstanding: 254,991,840
• 10 Day Avg. Volume: 50,879
• 30 Day Avg. Volume: 32,881
• PEG Ratio: 0.08
• Price to Book (P/B): 14.15
• Price to Sales (P/S): 22.05
• P/FCF Ratio: 31.21
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹2,980.00
• Price Target Upside: 19.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 48.08
• Revenue Forecast (FY): ₹21.57B

• Rating: 70 Outperform
• Price Target: ₹2,555.00 ▲(2.15% Upside)
• Action: Upgraded Date: 02/03/26
• Date: Action: Upgraded 02/03/26

The score is primarily supported by strong financial performance (rapid revenue growth, improved margins, healthy cash generation, and low leverage). Technicals add moderate support with a longer-term uptrend but near-term consolidation. The largest offset is valuation, with a high P/E and minimal dividend yield.

Positive Factors

Business model strength

MCX's core transaction-fee business for standardized futures and options creates recurring, scaleable revenue tied to trading activity. Diversification across bullion, base metals, energy and agri contracts supports resilience, while network effects from liquidity and membership fees raise barriers to entry and support long-term margin durability.

Accelerating revenue growth

Sustained, high revenue growth indicates increasing market adoption and higher trading activity across product lines. Durable top-line momentum strengthens reinvestment capacity for technology and product development, expands data and connectivity services, and underpins improved profitability over multiple quarters.

Strong cash generation & low leverage

High operating cash flow and free cash flow with a low debt profile provide financial flexibility to fund technology upgrades, market development, or strategic initiatives without heavy external financing. This cash strength supports resilience through trading cycles and enables sustained investment in core infrastructure.

Negative Factors

Moderate return on equity

A moderate ROE suggests the firm isn’t fully converting equity into high incremental profits. Over time this can constrain shareholder returns and indicates potential inefficiencies or limited leverage opportunities to amplify returns, creating pressure to improve capital allocation or operational productivity.

Revenue cyclicality

MCX's fee income depends heavily on trading volumes and which commodities trade actively. That structure produces cyclical revenue tied to market volatility and participant activity. In prolonged low-volatility or low-participation periods, transaction-driven revenues can meaningfully decline, stressing margins and cash flow.

Regulatory & operational dependency

Exchange economics are sensitive to regulatory changes in fee structures and to technology reliability. Regulatory actions can reprice or cap fees, while outages or lagging platform features reduce liquidity and participation. Both are structural risks that can erode the core transaction revenue base over time.

Multi Commodity Exchange of India Limited Business Overview & Revenue Model

Company Description

Multi Commodity Exchange of India Limited, a commodity derivatives exchange, provides a platform to facilitate online trading of commodity derivatives in India. It offers iCOMDEX, a real-time commodity futures price indices; and trades in bullion, base metals, energy, and agricultural commodities. The company also provides trade clearing and settlement services; and data feed services. It has strategic alliances with various exchanges, such as CME group, Dalian Commodity Exchange, London Metal Exchange, Mozambique Commodities Exchange, Taiwan Futures Exchange, and Zhengzhou Commodity Exchange. The company was incorporated in 2002 and is based in Mumbai, India.

How the Company Makes Money

MCX generates revenue primarily through transaction fees charged on trades executed on its platform. This includes fees for futures and options contracts across various commodities. Additionally, MCX earns income from annual membership fees paid by brokers and participants, as well as through the sale of data and market information services. The exchange also benefits from partnerships with financial institutions and technology providers, which enhance its trading infrastructure and attract more participants. Furthermore, MCX may derive revenue from educational programs and workshops aimed at increasing market participation and understanding of commodity trading.

Multi Commodity Exchange of India Limited Financial Statement Overview

Summary

Strong overall fundamentals driven by significant revenue growth and improved profitability, supported by robust operating cash flow and substantial free cash flow growth. Balance sheet leverage is low and equity financing is strong, though ROE is only moderate and margins could face pressure if costs rise.

Income Statement

The company shows a strong financial performance with significant revenue growth from 2024 to 2025, more than doubling its revenue. The gross profit margin is exceptionally high, indicating strong cost management. Net profit margin has also improved significantly, reflecting increased profitability. However, the EBIT and EBITDA margins, while healthy, could face pressure if costs increase.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio, indicating low leverage and financial risk. The equity ratio is strong, suggesting a high proportion of equity financing. However, the Return on Equity (ROE) is moderate, suggesting room for improvement in generating profits from shareholders' equity.

Cash Flow

Cash flow analysis reveals a robust operating cash flow, with a high free cash flow to net income ratio, indicating efficient cash generation from operations. The free cash flow growth is substantial, showcasing strong cash management. However, the ratio of operating cash flow to net income suggests potential fluctuations in cash generation relative to accounting profits.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	13.96B	12.09B	5.84B	4.48B	3.29B	3.48B
Gross Profit	11.74B	11.39B	536.70M	1.39B	1.76B	1.93B
EBITDA	9.71B	7.62B	1.38B	2.12B	2.07B	2.89B
Net Income	6.96B	5.60B	831.10M	1.49B	1.43B	2.25B
Balance Sheet
Total Assets	52.67B	43.25B	34.09B	30.23B	28.01B	25.03B
Cash, Cash Equivalents and Short-Term Investments	23.00B	24.29B	12.77B	13.78B	16.86B	10.24B
Total Debt	10.40M	10.10M	16.60M	15.50M	8.60M	22.30M
Total Liabilities	21.46B	15.11B	12.50B	9.54B	8.57B	6.15B
Stockholders Equity	20.87B	18.84B	13.78B	14.79B	14.18B	14.18B
Cash Flow
Free Cash Flow	9.77B	8.54B	3.78B	701.50M	3.09B	-2.06B
Operating Cash Flow	10.16B	9.50B	5.21B	1.41B	3.91B	-1.84B
Investing Cash Flow	-6.07B	-7.51B	-4.24B	-80.80M	-1.42B	-387.80M
Financing Cash Flow	-1.53B	-402.00M	-981.80M	-894.80M	-1.42B	-1.54B

Multi Commodity Exchange of India Limited Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2501.25
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MCX, the sentiment is Neutral. The current price of 2501.25 is below the 20-day moving average (MA) of 2504.76, above the 50-day MA of 2432.96, and above the 200-day MA of 1923.33, indicating a neutral trend. The MACD of 36.81 indicates Positive momentum. The RSI at 45.17 is Neutral, neither overbought nor oversold. The STOCH value of 33.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:MCX.

Multi Commodity Exchange of India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAMS	74 Outperform	₹154.27B	36.53	―	1.32%	12.35%	8.91%
IEX	72 Outperform	₹102.95B	25.04	―	3.23%	14.10%	19.23%
MCX	70 Outperform	₹590.26B	35.33	―	0.28%	49.22%	100.59%
CRISIL	68 Neutral	₹292.63B	41.26	―	1.38%	6.61%	11.88%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PTCIL	63 Neutral	₹253.92B	379.22	―	―	66.18%	31.67%
QUESS	55 Neutral	₹25.39B	13.93	―	4.70%	-16.43%	-75.38%