Review

INDIAN ENERGY EXCHANGE 

Ticker : 540750  
FV: Rs 1  
52-Week H/L: Rs 219.05/111.05

We had previously recommended Indian Energy Exchange Limited (IEX) in vol. 36, no. 46, dated September 07, 2020, when the scrip was trading at Rs 194.75. Being a dominant player in the exchange market, it was recommended based on the good quarterly results. On a quarterly consolidated front, the company reported net sales of Rs 67.88 crore in Q1FY21, up by 12.1 per cent from Rs 60.55 crore during the same period for the previous fiscal year. The operating profit of the company was reported at Rs 61.34 crore in Q1FY21, increasing by 4.84 per cent from Rs 58.51 crore in Q1FY20. Net profit after tax came in at Rs 42.09 crore in Q1FY21 from Rs 39.59 crore in the Q1FY20, expanding by 6.34 per cent. The company recently announced a further investment of Rs 10 crore in Indian Gas Exchange Limited, a wholly-owned subsidiary of IEX. Hence, we recommend booking profit on September 15, 2020, at Rs 214.65 with a gain of 10.22 per cent.