Motilal Oswal has reiterated a BUY rating on Multi Commodity Exchange (MCX) with a target price of INR 7,600, following a strong performance in the second quarter of FY25.

The company's operating revenue increased by 73% year-on-year, reaching INR 2.9 billion, which exceeded estimates by 5%. This growth was driven by a significant increase in trading volumes, with futures volumes rising by 46% to INR 17.5 trillion and options volumes soaring by 129% to INR 126 trillion.

MCX's EBIT for the quarter was INR 1.7 billion, a significant improvement from an EBIT loss of INR 353 million in the same period last year. The company also reported a profit after tax (PAT) of INR 1.5 billion, compared to a loss of INR 191 million in 2QFY24, marking a 39% sequential growth and exceeding estimates by 7%. For the first half of FY25, PAT reached INR 2.6 billion, a substantial increase from INR 6 million in the previous year.

Analysts have adjusted their FY25 and FY26 earnings per share estimates upward by 10% and 11%, respectively, reflecting the strong volume growth, although this is tempered by a slight rise in expected SGF contributions.