MCX’s shares look like they fell 80% on Jan 2, but the drop is just a technical effect of a 1‑for‑5 stock split.
What the 1:5 Stock Split Means
On Jan 2, MCX announced that each existing share (₹10 face value) would be split into five shares of ₹2 each. The total number of shares rises, while the price per share falls to one‑fifth of the pre‑split level. This keeps the overall market value unchanged.
- Pre‑split closing price (Jan 1): ₹10,989
- Post‑split adjusted price: ₹2,198 (one‑fifth of ₹10,989)
- Peak price after split: ₹2,278, a 3.6% rise from the adjusted close
Why the Chart Shows an 80% Drop
Many charting tools still display the raw price, so they appear to show an 80% fall from the previous day’s ₹10,989 level. In reality, the split merely changes the unit price; your total investment value stays the same.
Morgan Stanley’s Upgrade
Global brokerage Morgan Stanley recently turned bullish on MCX. It raised its target price to ₹11,135 from ₹6,710 and moved the rating to “Equal Weight.” The upgrade is based on a sharp rise in daily transaction revenue and strong commodity price action.
- Expected earnings‑per‑share growth: 15% for FY26, 20% for FY27, 24% for FY28
Recent Performance Highlights
- MCX shares have jumped about 75% over the past year, far outpacing the benchmark index.
- Over the last five years, the stock has risen roughly 535%, making it a multibagger.
Key Takeaway for Retail Investors
The apparent 80% price dip is a bookkeeping effect, not a loss. After the split, the stock even showed a modest rise, and a major broker has upgraded its outlook. Keep an eye on the company’s earnings growth and the broader commodities market before deciding.
Remember, this is perspective, not a prediction. Do your own research and consider seeking professional advice before investing.