MCX is in focus after Morgan Stanley has sharply downgraded the stock to ‘underweight’ now from ‘equal-weight’. The brokerage firm has cut the target price to Rs 1,450 versus its earlier target price of Rs 1,750.
Morgan Stanley believes MCX lacks visible triggers from hereon, they have cut the average daily traded value by almost 14 to 30 percent for FY22 to FY24.
On back of this, they have cut EPS by almost 22 percent for FY22 and 18 percent for FY23.
Given the weak fundamentals and expensive valuations, they believe the risk -reward is unfavourable. They have cut the target multiple as well from 32x to 30x and hence a big downgrade coming in on MCX.
Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.
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