Shares of Indian Energy Exchange Ltd (IEX) surged to a 52-week high on Thursday, following the upward momentum of benchmark indices like Sensex and Nifty, which also reached fresh highs. The IEX stock hit ₹ 230.10, up from the previous close of ₹ 228.05 on the Bombay Stock Exchange (BSE). Despite this surge, it later shed some gains, closing 1.27% lower at ₹ 225.17.
Stock performance and market cap
IEX has demonstrated remarkable growth in recent times. With a market capitalisation of ₹ 20,233 crore on the BSE, the stock is performing well, with total trading volume reaching 4.73 lakh shares, which amounted to a turnover of ₹ 10.69 crore. Given its recent performance, the stock presents a compelling case for investors looking to buy shares online.
In terms of historical lows, the stock hit its 52-week low of ₹ 121.30 on October 26, 2023. However, the recent rally shows its strong recovery, and the stock has been trading higher than key moving averages, including the 5-day, 10-day, 50-day, 100-day, and even 200-day averages. This consistent rise signals growing investor confidence in the stock.
Technical analysis and market outlook
From a technical standpoint, the stock's relative strength index (RSI) is 77.1, indicating it is currently in the overbought zone. With a beta of 1.4, IEX also exhibits high volatility, which investors need to consider when deciding whether to buy shares online. The stock’s performance continues to draw attention from analysts and brokerage firms.
Brokerage firm Antique Stock Broking has issued a 'Buy' call on IEX, revising its price target to Rs 262 from the earlier ₹ 219. It has also raised its earnings per share (EPS) estimates for FY25, FY26, and FY27 by 5%, 6%, and 7%, respectively. Additionally, the firm raised the valuation multiples to 45 times from 40 times, reflecting its positive outlook on IEX’s long-term growth potential.
Global brokerage UBS has similarly raised its price target to ₹ 260, citing shifting market momentum and green energy products as key drivers for the firm. Renewable Energy Certificates trading and long-duration contracts are expected to be major growth prospects for IEX in the near future.
Risks and future prospects
While market coupling risks continue to loom over the firm, both Antique Stock Broking and UBS believe that these risks will diminish over time due to implementation challenges. UBS noted that while the Central Electricity Regulatory Commission (CERC) has directed simulations to assess market coupling, progress has been slow, reducing the likelihood of immediate impact on IEX’s operations.
Looking ahead, IEX’s financial health remains strong. The firm posted a consolidated net profit of ₹ 96.44 crore for the June 2024 quarter, up by over 27% compared to ₹ 75.82 crore a year earlier. Total income for the quarter rose to ₹ 154.47 crore, driven by higher revenues.
Key takeaways
With IEX shares hitting a 52-week high and both domestic and global brokerages issuing optimistic forecasts, the stock seems poised for further growth. Investors considering entering the market may find this a prime opportunity to buy shares online, particularly in a company with a strong financial base and a promising future in the green energy space.
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