Shriram Finance has received a significant boost with CARE Ratings upgrading the company's long-term rating from AA+ to AAA with a stable outlook on December 29, 2025. The upgrade came just one week after the announcement of the company's MUFG deal, demonstrating the positive impact of this strategic partnership on the company's credit profile.

Rating Upgrade Details

The rating enhancement by CARE Ratings was in line with market expectations and reflects the strengthened financial position of the non-banking financial company. The upgrade represents a significant milestone for Shriram Finance, as AAA ratings are typically reserved for entities with the highest degree of safety regarding timely servicing of financial obligations.

Brokerage Outlook and Expectations

Motilal Oswal Securities has expressed optimism about the rating upgrade's implications for Shriram Finance. The brokerage believes this upgrade is likely to be the first of several similar actions from other Credit Rating Agencies (CRAs) in the coming quarters. Such upgrades across multiple rating agencies would create a positive cascade effect for the company's financial operations.

Impact on Cost of Funds

The AAA rating upgrade is expected to have a direct positive impact on Shriram Finance's cost of funds. Higher credit ratings typically enable companies to access capital markets at more favorable interest rates, as investors perceive lower risk in lending to AAA-rated entities. This improvement in funding costs could enhance the company's profitability margins and competitive positioning in the financial services sector.

Strategic Partnership Influence

The timing of the rating upgrade, coming shortly after the MUFG deal announcement, highlights the positive reception of this strategic partnership by rating agencies. The collaboration with MUFG appears to have strengthened Shriram Finance's credit profile and operational capabilities, contributing to the favorable rating action by CARE Ratings.

Multi Commodity Exchange of India shares surged over 3% on Wednesday, hovering near their all-time high following a significant upgrade from Morgan Stanley. The stock touched an intraday high of ₹11,198.00, just shy of its 52-week high of ₹11,218.45, as the global brokerage delivered a substantial target price increase alongside positive earnings revisions.

Morgan Stanley Delivers Major MCX Upgrade With 66% Target Hike

Morgan Stanley has upgraded MCX to Equal Weight from Underweight, delivering a substantial 66% target price increase to ₹11,135.00 from ₹6,710.00. The brokerage's optimistic stance is driven by strong momentum in average daily transaction revenue (ADTR) over the past three months:

The surge in ADTR has been primarily driven by heightened volatility in gold and silver prices, which contributed nearly 55% to ADTR during the period. Morgan Stanley expects this momentum to continue, with the brokerage materially raising earnings estimates and seeing potential upside risks if volatile transaction volumes are sustained.

Strong Market Performance Reflects Bullish Sentiment

MCX shares have demonstrated exceptional market performance, with the stock gaining significant momentum in recent months. The current trading levels reflect strong investor confidence:

The stock's remarkable surge of more than 150% from its 52-week low demonstrates the strong momentum in commodity exchange operations amid increased participation in bullion derivatives and robust volume traction.

Revised Earnings Projections Signal Strong Growth

Morgan Stanley has significantly increased its earnings per share forecasts for MCX across multiple years, reflecting confidence in sustained business momentum:

Despite acknowledging that MCX's valuation remains expensive, Morgan Stanley noted that sustainable ADTR could help normalize valuation multiples over time. At current prices, MCX trades at premium valuations, but sustained transaction revenue could justify these levels.

Key Risks and Market Outlook

While the upgrade reflects strong fundamentals, Morgan Stanley has flagged important risk factors that investors should consider:

The brokerage emphasized that any significant decline in ADTR could lead to rapid profit-taking, especially given that trading revenue data is disclosed on a daily basis, providing high transparency but also potential for increased volatility.

Analyst Consensus and Market Position

Among the 12 analysts tracking MCX, six maintain a Buy rating, five recommend Hold, and one has a Sell call, indicating predominantly positive sentiment. The company's position as India's leading commodity exchange, combined with increased commodity price volatility and growing retail participation in derivatives trading, continues to support the bullish outlook from most market participants.