MCX stock riding on hopes of strong prospects post technology upgrade

The long-term growth opportunity remains, and trading volumes may benefit from new product launches

After a technology upgrade, the Multi Commodity Exchange of India (MCX) appears poised for an improvement in volumes. The premier commodity and forex exchange reported a loss of Rs 19.1 crore in the July-September quarter (second quarter, or Q2) of 2023-24 (FY24). This was attributed to higher software charges payable under an extended service agreement with 63 moons technologies and a one-off cost towards core guaranteed funds (CGF).

Overall volumes improved by 86 per cent year-on-year (Y-o-Y) to Rs 67 trillion, and total revenue grew by 30 per cent Y-o-Y to Rs 165 crore (in line with expectations), with an