Shares of Multi Commodity Exchange of India Ltd (MCX), the largest commodity derivatives exchange in the country, gained attention after the company reported its Q2 earnings. Following the announcement, the stock price rose by 3.44% to ₹6,560 on the BSE.
This rise came as the exchange turned profitable with a net profit of ₹153.6 crore in the July-September quarter, compared to a loss of ₹19.1 crore in the same quarter of the previous fiscal year. Investors looking to buy shares online have shown increased interest as the stock surged. The market capitalisation of MCX stood at ₹33,456 crore during the session.
MCX shares have shown remarkable growth over the past two years, gaining 399% during this period and increasing by 199% in the past year alone. The stock’s beta, a measure of its volatility, stands at 1.4, indicating high price swings compared to the market. On Friday, a total of 0.21 lakh shares were traded on the BSE, resulting in a turnover of ₹13.56 crore. With such momentum, investors might be tempted to buy shares online to take advantage of these price movements.
From a technical perspective, MCX shares are currently trading in an overbought zone. The relative strength index (RSI) stands at 75.8, a level that suggests strong bullish momentum. Additionally, the stock is trading higher than its 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day moving averages, further indicating a positive trend. This may influence those looking to buy shares online, as they might perceive this as an opportunity for further gains.
MCX recorded significant improvements in its financial performance during Q2. Revenue from operations grew by 73% to ₹285.6 crore, compared to ₹165.1 crore in the same period of the previous fiscal year.
The company also reported an EBITDA of ₹179.4 crore for the second quarter, a dramatic turnaround from an EBITDA loss of ₹28.6 crore in the corresponding quarter of the last fiscal year. The EBITDA margin for Q2 FY24 stood at 62.8%.
For investors tracking financial indicators, such performance might encourage further interest in the stock, leading them to buy shares online for long-term gains.
The Q2 earnings have brought renewed attention to MCX shares, which continue to show upward momentum. With the company now back in profit and demonstrating strong operational growth, it may attract more investors looking to buy shares online.
The volatility of the stock, combined with its strong financial results, suggests that MCX could remain a popular choice among those looking to capitalise on the commodity derivatives market. However, potential investors should consider the risks associated with high volatility when making investment decisions.
With the recent financial turnaround and the positive market reaction, MCX shares appear to be an attractive option for those looking to invest. The stock’s upward trajectory, combined with its strong technical indicators and improved financial performance, makes it a compelling choice for those planning to buy shares online. However, given the high volatility and the stock’s position in the overbought zone, investors should carefully consider their risk tolerance before making a purchase decision.
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