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

• Market Cap: ₹623.29B
• Dividend Yield: 0.28%
• Average Volume (3M): 32.88K
• Price to Earnings (P/E): 66.4
• Beta (1Y): 1.63
• 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: 21.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 47.68
• Revenue Forecast (FY): ₹21.27B

• Rating: 70 Outperform
• Price Target: ₹2,555.00 ▲(4.53% 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

Strong Revenue Growth

Sustained, high double‑digit revenue growth and a reported doubling year-over-year reflect expanding market adoption and product uptake. For an exchange, durable top-line expansion supports reinvestment in infrastructure, scale economics, and resilience across business cycles.

Robust Cash Generation

Strong operating cash flow and high free cash flow conversion indicate the business converts profits into cash reliably. This durable cash generation funds tech and compliance investment, supports capital returns or opportunistic M&A, and reduces refinancing risk during downturns.

Low Financial Leverage

A low debt profile and strong equity base provide financial flexibility to invest in exchange infrastructure, meet regulatory capital requirements, and absorb shocks. This structural strength reduces default risk and preserves strategic optionality over the medium term.

Negative Factors

Revenue Linked to Trading Volumes

Primary reliance on transaction fees tied to volumes and contract mix makes revenue cyclically sensitive to commodity market activity. Structural downturns or shifts in participant behavior can materially reduce fee income and complicate multi‑period planning for fixed costs.

Moderate Return on Equity

Despite strong margins and cash generation, a moderate ROE implies capital is not being converted into shareholder returns as efficiently as peers. Over months this can limit shareholder value creation unless capital allocation or operational efficiency improves.

Margin Pressure Risk

Healthy current margins could be eroded by rising technology, surveillance, compliance, or personnel costs, or by a shift toward lower‑fee product mix. Sustained cost inflation or necessary investment to maintain platform quality would compress profitability and cash flow.

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	12.81B	12.09B	5.84B	4.48B	3.29B	3.48B
Gross Profit	10.27B	11.39B	536.70M	1.39B	1.76B	1.93B
EBITDA	8.79B	7.62B	1.38B	2.12B	2.07B	2.89B
Net Income	6.52B	5.60B	831.10M	1.49B	1.43B	2.25B
Balance Sheet
Total Assets	0.00	43.25B	34.09B	30.23B	28.01B	25.03B
Cash, Cash Equivalents and Short-Term Investments	24.29B	24.29B	12.77B	13.78B	16.86B	10.24B
Total Debt	0.00	10.10M	16.60M	15.50M	8.60M	22.30M
Total Liabilities	-28.15B	15.11B	12.50B	9.54B	8.57B	6.15B
Stockholders Equity	28.15B	18.84B	13.78B	14.79B	14.18B	14.18B
Cash Flow
Free Cash Flow	0.00	8.54B	3.78B	701.50M	3.09B	-2.06B
Operating Cash Flow	0.00	9.50B	5.21B	1.41B	3.91B	-1.84B
Investing Cash Flow	0.00	-7.51B	-4.24B	-80.80M	-1.42B	-387.80M
Financing Cash Flow	0.00	-402.00M	-981.80M	-894.80M	-1.42B	-1.54B

Multi Commodity Exchange of India Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2444.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MCX, the sentiment is Positive. The current price of 2444.35 is above the 20-day moving average (MA) of 2401.31, above the 50-day MA of 2332.63, and above the 200-day MA of 1840.57, indicating a bullish trend. The MACD of 23.21 indicates Negative momentum. The RSI at 54.69 is Neutral, neither overbought nor oversold. The STOCH value of 87.38 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	₹168.07B	36.18	―	1.32%	12.35%	8.91%
IEX	72 Outperform	₹111.60B	23.20	―	3.23%	14.10%	19.23%
MCX	70 Outperform	₹623.29B	66.38	―	0.28%	49.22%	100.59%
CRISIL	68 Neutral	₹320.05B	41.78	―	1.38%	6.61%	11.88%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PTCIL	63 Neutral	₹268.85B	405.82	―	―	66.18%	31.67%
QUESS	55 Neutral	₹29.17B	47.15	―	4.70%	-16.43%	-75.38%