NEW DELHI: Multi-Commodity Exchange (MCX), the first Indian bourse to list on an exchange, has debuted at Rs 1,387, a 34% premium to its issue price and has the potential to rise up to Rs 1650-1700 in the long term, say analysts.
"For investors who have missed out on the issue, they may enter the stock at levels of Rs 1300-1350 with an upside potential of 1650-1700 at least in the long term. From a valuation front, pricing seems quite reasonable compared to other developing exchanges such as Hong Kong and Malaysia," said Silky Jain, Analyst, Nirmal Bang Securities, in an interview with ET Now.
"Short-term retail investors can book profits at these levels. However, if they want to re-enter, they can wait for the stock to correct and re-enter around Rs 1150-1200 levels going forward," said Shweta Prabhu, Assistant Manager, Anand Rathi, talking about the MCX listing.
"So long-term investors can book profits around 1500 levels and maybe they can see a target around 1650 or so for the year end," added Shweta Prabhu.
According to analysts, MCX valuation is attractive and provides room for further upside in the stock. However, the coming budget session may bring some surprise to investors if STT is imposed on commodities.
MCX leadership in commodity markets in India, its debt free balance sheet and attractive valuation to its global player make it a good long term buy for investors.
"At 1500, the PE multiple comes at around 23-24 times, while the global players are trading around 17-18 times. So we might expect some profit booking at Rs 1500 as P/E of 24-25 times becomes a little expensive," added Shweta.
Experts believe that the robust demand for the MCX IPO and then an impressive listing could also lead to other exchanges getting listed and help revive the overall primary market.
MCX's promoter company Financial Technologies India Ltd is already listed at the BSE and NSE. The stock ended 6.04% lower at Rs 811.50 on the BSE at 11:30 a.m. The stock has hit a low of Rs 806.85 and a high of Rs 889.90.
Shares of MCX closed 25.68% higher at Rs 1297.05 on the Bombay Stock Exchange. The stock hit a high of Rs 1426 and a low of Rs 1282.10.