Fundamental Analysis

INDIAN ENERGY EXCHANGE LIMITED

Ticker : 540750
BUY : Rs 194.75
Target : Rs 215

Indian Energy Exchange Limited (IEX) offers an electronic platform for the trading of electricity products. Its products include day-ahead-market (DAM) electricity contracts, termahead- market (TAM) electricity contracts, renewable energy certificates (REC), and energy-saving certificates. On a consolidated quarterly front, the total income reported by the company was Rs 81.09 crore in Q1FY21, expanding by 16.41 per cent from Rs 69.66 crore in Q1FY20. The operating profit increased to Rs 61.34 crore in Q1FY21, up by 4.84 per cent from Rs 58.51 crore in Q1FY20. The company reported a net profit of Rs 42.09 crore in Q1FY21, increasing by 6.34 per cent from Rs 39.59 crore in Q1FY20. IEX has been at the forefront of growth with a dominant position in the exchange market. It enjoys an early-mover advantage and strong brand recognition among the energy market participants. We recommend a BUY.