MCX and BSE stocks experience significant growth, prompting investors to weigh options
Both BSE and MCX shares have enjoyed substantial rallies this year, driven by robust fundamentals, increased trading volumes, and positive earnings outlook.
Year-to-date, BSE’s stock has soared by over 330%, reflecting strong investor confidence in the exchange. Similarly, MCX shares have seen notable growth, with an 85% increase during the same period.
Analysts maintain a bullish stance on both stocks, anticipating continued strong performances in the future, fueled by unique catalysts associated with each exchange.
Q2 Results:
BSE reported a noteworthy net profit of ₹118.41 crore in Q2 FY24, marking a more than fourfold increase from ₹29.39 crore in the corresponding period last year. The exchange’s Q2 revenue reached ₹367 crore, showing a robust 53% growth, and the operating EBITDA surged to ₹141.7 crore.
In contrast, MCX reported a net loss of ₹19.07 crore in Q2 FY24, primarily due to contributions made to the Settlement Guarantee Fund (SGF). However, the company’s revenue from operations increased by 30% to ₹165.11 crore.
BSE Shares Outlook:
BSE is capitalizing on its traction in the equity index options segment, with a surge in volume growth, price hikes, and the introduction of new products in the derivatives segment. The exchange achieved a significant milestone by trading over 27 crore contracts in its equity derivatives segment, representing a notional turnover of ₹177 lakh crore on November 10, 2023.
While analysts have previously upgraded and downgraded BSE based on market dynamics, the current rating stands at ‘Hold.’ The target price has been revised to ₹2,411 per share, reflecting the exchange’s optimistic future.
MCX Shares Outlook:
MCX, India’s largest commodity bourse, has transitioned to a new technology platform and experienced robust volume growth in commodity options trading. Despite a net loss in Q2 FY24, the exchange’s prospects remain positive.
MCX’s commodity options have grown nearly 14 times since June 2021, and its average daily turnover of futures and options rose by 25.5% to ₹1.05 lakh crore in the quarter ended September 2023. The launch of the new commodity derivatives platform (CDP) has been smooth, and the exchange plans to introduce new products shortly.
Analysts are optimistic about MCX’s near- to medium-term drivers, including new product launches, continued volatility in key commodity prices, and increased retail participation in the options market.
At present, BSE’s share price trades 1.13% higher at ₹2,348.25, while MCX shares are up by 4.32% at ₹2,894.45.
Investors are closely monitoring both exchanges, considering their distinct offerings and growth potential in the evolving market landscape.
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