MCX share price jumps 8% to touch 52-week high; here’s why

Multi Commodity Exchange of India Limited share price opened at ₹2,934.95 apiece on BSE today. Multi Commodity Exchange of India share price touched an intraday high of ₹3,168 and an intraday low of ₹2,932. Multi Commodity Exchange stock price, as per trendlyne data, rose 100.16% and outperformed its sector by 75.01% in the past year.

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According to Ruchit Jain, Lead Research Analyst at 5paisa, MCX stock has been rallying in an uptrend since September and it has shown a huge outperformance in this period. The momentum continues to be bullish but the readings are now in the overbought zone. Hence, investors with existing positions should continue to ride the trend but new buying should be done either on some price-wise correction or a consolidation phase.

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According to MCX’s exchange filing on Saturday, November 25, pending the revised sharing of cost, the board decided to only recover the technology costs for the old platform from MCXCCL until October 15, 2023, on a “pay-for-use basis,” by the terms of the current Resource Sharing Agreement. MCX will be responsible for the remaining expenditure, which amounts to approximately ₹35 crore, on the old platform between October 16, 2023, and December 31, 2023.

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Furthermore, it is suggested that MCXCCL receive up to Rs. 25 crore in unsecured loans or intercorporate deposits as needed to meet their operational needs. The same will depend on receiving the required regulatory approvals.

“Since the commencement of operations of our subsidiary company, MCXCCL, the technology cost are shared between Parent company-MCX and Subsidiary-MCXCCL. With effect from October 16, 2023, the technology platform has been changed over to a new platform, for which the technology cost sharing are being finalised as per Transfer Pricing Norms, subject to confirmation from the statutory auditors,” the company said in its filing. 

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MCX reported a net loss of ₹19.07 crore in the second quarter of fiscal year 2023-24 (Q2FY24), as per the financial results declared on November 8. Contrary to the net loss, the commodity derivatives exchange was profitable in the year-ago and quarter-ago periods. The net profit stood at ₹63.3 crore in Q2FY23 and at ₹19.6 crore in Q1FY24.

The company’s revenue from operations, however, increased during the quarter under review by 30 percent. It came in at ₹165.11 crore versus ₹127.4 crore in the corresponding quarter of the previous fiscal.

Also Read: MCX Q2 results: Net loss at ₹19 crore, revenue rises 30%

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Updated: 28 Nov 2023, 01:11 PM IST