IEX shares hits 52-week high after Antique raises target price, sees 20% upside

At 11 AM, IEX shares traded 2.3 percent higher at Rs 216. The new target price set by Antique indicates an upside of over 21 percent from the stocks current market price.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Shares of the Indian Energy Exchange (IEX) rose over 3 percent to hit a 52-week high of Rs 218 around noon on September 12 after Antique Broking raised its target price for the stock to Rs 262 from Rs 219, while maintaining a 'Buy' recommendation.

The firm said that IEX saw impressive double-digit volume growth in August 2024 and year-to-date. The volume growth is supported by softness in exchange prices which includes Day-Ahead Market (DAM) price.

At 11.30 AM, IEX shares traded 3 percent higher at Rs 218. The new target price set by Antique indicates an upside of over 2o percent from the stock's current market price. IEX shares have gained 53 percent in the past six months, outperforming the Nifty 50 index which gained 12 percent during the same period.

Antique also increased its EPS estimates by 5 percent, 6 percent, and 7 percent for FY25, FY26, and FY27, respectively, while raising its valuation multiple to 45x from 40x.

Follow our live blog for all the market action

Antique believes that market coupling risks could diminish over time due to practical challenges in implementation. Before these risks surfaced, IEX enjoyed peak price-to-earnings (P/E) valuations of over 50x.

Market coupling involves combining bids from various power exchanges to determine a single, uniform price for electricity, aiming to reduce price differences between exchanges.

IEX, India's leading electricity exchange, recorded a total volume of 12,040 million units (MU) in August 2024, reflecting a 35.8 percent year-on-year increase. Electricity volume surged by 17.1 percent YoY to 9,914 MU, while renewable energy certificates (REC) saw a staggering 737.4 percent growth, reaching 2,116 MU, IEX informed the exchanges on September 3.

IEX reported a 27 percent rise in consolidated net profit for the June quarter, reaching Rs 96.4 crore, driven by higher revenues. In comparison, the company's net profit stood at Rs 75.8 crore in the same quarter last year. According to an exchange filing, IEX's operational revenue increased by 18.8 percent year-on-year to Rs 123.5 crore, up from Rs 104 crore in the corresponding period last year.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.