Question 1

What is IEX, and what does it do?

Accepted Answer

IEX is India’s first and leading energy exchange, offering a platform for trading electricity, renewable energy certificates, and energy-saving certificates. It facilitates the physical delivery of power across India.

Question 2

What is the current market position of IEX?

Accepted Answer

IEX holds a dominant market share of 94.2% in power trading and leads the Day Ahead Market (DAM) and Real-Time Market (RTM) segments.

Question 3

Is IEX a good stock to invest in?

Accepted Answer

IEX is a strong long-term investment due to its dominant market position, consistent revenue growth, and expanding presence in the renewable energy sector. However, investors should consider its relatively high PE ratio.

Question 4

What are the short-term and long-term targets for IEX stock?

Accepted Answer

Short-term target: ₹210 with a stop loss at ₹170. Long-term target: ₹250 with a stop loss at ₹155.

Question 5

How does IEX make money?

Accepted Answer

IEX generates revenue primarily through transaction fees, annual admission fees, and other income sources related to its trading platform.

Question 6

What is the projected EPS growth for IEX?

Accepted Answer

EPS is projected to grow to ₹4.06 by FY25, reflecting steady earnings growth.

Question 7

What are the key risk factors for IEX?

Accepted Answer

Regulatory changes, increased competition, and fluctuating demand for electricity are potential risks that could impact IEX’s future performance.

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Fundamental Analysis of Rising Midcap PSU: Indian Energy Exchange (IEX) – A Powerhouse with Promising Growth Potential