Jun. 25 at 8:42 AM
$IEX.NSE
Fundamental View-
$INDIAN Energy Exchange (
$IEX) is India’s leading and first electricity exchange, providing a transparent platform for power, renewable energy, and certificate trading.
The company enjoys a near-monopoly position in electricity trading with a highly scalable, asset-light, and debt-free business model.
With a market cap of around ₹14,000 to ₹15,000 crore,
$IEX has a high P/E ratio of approximately 40x to 45x, reflecting investor confidence in its consistent profitability and growth prospects.
The company delivers strong return ratios with ROE in the range of 35% to 40% and maintains healthy cash flows.
$IEX is well-positioned to benefit from India’s growing electricity demand and renewable energy focus. However, factors like regulatory dependency and rising competition from players like Hindustan Power Exchange remain key risks.
Overall,
$IEX is fundamentally strong and remains an attractive long-term stock for investors seeking exposure to India’s power sector growth.
Technical View-
As seen on the daily chart, the stock has been undergoing a correction phase for the last three trading sessions, primarily triggered by the decoupling and coupling news, which led to a sharp fall.
However, the stock now appears to have digested that news and is showing signs of recovery, getting ready to regain its previous levels.
On the technical front, the stock is taking strong support around its 200-day EMA, near the 175 level. Yesterday, the stock witnessed a gap-up opening at 184.50, made a low of 184.25, and closed at 187.75, successfully holding above its 14-day and 55-day EMA levels.
Today, the stock opened at 189.00, made a low of 188.35, and is currently trading around 190, indicating buying strength.
In the short term, the stock may witness minor dips, but an entry around the 188-189 zone looks favourable with a stoploss near 175 for long-term positions.
If the positive momentum continues, the stock may soon retest levels of 210-215 in the coming weeks.
