MCX soars 6% to hit fresh 52-week high
Team Moneycontrol
November 28, 2023 / 02:02 PM IST
MCX stock has delivered multibagger returns so far in 2023.
The Multi Commodity Exchange of India (MCX) stock surged more than 6 percent on November 28 to hit a fresh 52-week high of Rs 3,169.55 on the National Stock Exchange.
The gain for the stock, which has been removed from the NSE F&O ban list, comes after the company shared the details of the board’s decision to recover technology costs for the old platform from its subsidiary, Multi Commodity Exchange Clearing Corporation Ltd (MCXCCL).
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, the company said in an exchange filing.
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MCX will be responsible for the remaining expenditure, which amounts to approximately Rs 35 crore, on the old platform between October 16, 2023, and December 31, 2023.
MCXCCL will also receive up to Rs 25 crore in unsecured loans or intercorporate deposits, as needed to meet its operational needs. The same will depend on receiving the required regulatory approvals.
“Since the commencement of operations of our subsidiary company, MCXCCL, the technology costs are shared between Parent company-MCX and Subsidiary-MCXCCL,” it said.
From October 16, the technology platform changed over to a new one for which the technology cost sharing was being finalised as per transfer pricing norms, subject to confirmation from the statutory auditors, the company said in its filing.
For the quarter ended September 30, MCX narrowed net loss to Rs 19.07 from Rs 63.3 crore in the year-ago period. Its revenue was up 30 percent at Rs 165.11 crore.
MCX has gained over 112 percent this year, doubling investors’ money and outperformed the Nifty 50, which has rallied 8.7 percent.
Expert say the counter has been rallying since September, showing a huge outperformance in the period. The momentum continues to be bullish but the stock appears to be in the overbought zone now, they say.
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“Regarding exchanges, corporate governance issues are minimal, making it a favorable choice; however, valuations are notably higher,” Amit Gupta, Senior Vice President & Fund Manager, ICICI Securities PMS, said. In the short term, valuation seems to be a restricting factor for exchange movements.
At 1.18 pm, MCX was trading 5 percent higher at Rs 3,091.85 on NSE.
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