Recent weakness a good entry point in MCX stock

Average target price indicates upside potential of 25% from current levels

Weak volumes, coupled with higher operating expenses, impacted the results of the MCX (Multi Commodity Exchange of India) for the March 2017 quarter (Q4). Falling volumes of precious metals, both gold and silver, thanks to continued subdued activity in the physical market after the note ban, led to a sharp 10 per cent sequential dip in the MCX’s volumes in the quarter. Higher realisations after the recent price hike in transaction charges, however, enabled the MCX to post a consolidated income of Rs 57 crore, which, though down 9.5 per cent sequentially, was in line with analyst expectations. Higher expenses