MCX Shares Plummet Up to 5% on UBS Warning of Slowing Earnings Momentum

MCX Shares Decline 5 Percent Following UBS Downgrade

The Multi Commodity Exchange (MCX) shares experienced a decline of up to 5 percent on Friday, following a downgraded rating from brokerage UBS. The stock reached an intraday low of Rs 3,000 per share on the National Stock Exchange (NSE).

The decline marks the third consecutive trading session in which MCX shares have fallen, with a total decrease of over 9 percent. This drop follows a period of elevated volatility across key commodities, which had previously boosted trading volumes. However, UBS suggests that the peak earnings momentum for MCX is likely behind it.

According to UBS' analysis, the volumes in Q1FY27 remain healthy, but have normalized from the elevated levels seen during Q4FY26. As a result, the brokerage downgraded the stock to "Neutral" from its earlier rating.

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Notably, UBS raised the target price for MCX to Rs 3,600 from Rs 3,200, implying an upside potential of 14 percent from the previous closing level. Despite this, the brokerage believes that the stock valuations remain rich at around 50 times one-year forward price-to-earnings, which is approximately 10 percent above the historical average.

The brokerage concludes that strong volume growth appears to be already priced in, limiting further upside for the stock.