IEX - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 My Thought Process

You're asking for a full-spectrum fundamental analysis of Indian Energy Exchange Ltd (IEX), with a numeric rating and strategic investment guidance. I’ve weighed profitability, capital efficiency, valuation, and business durability, and factored in recent institutional moves and technical signals as of September 2025.

📊 Fundamental Analysis of IEX

🔍 Core Financials

Profitability

PAT Qtr: ₹113 Cr vs ₹112 Cr — stable, with YoY growth of 21.0%.

EPS: ₹4.87 — modest, but consistent.

ROE: 40.5%, ROCE: 53.6% — exceptional capital efficiency, among the highest in the sector.

Leverage & Liquidity

Debt-to-equity: 0.01 — virtually debt-free, excellent financial resilience.

Dividend Yield: 2.02% — attractive for a tech-driven utility platform.

Cash Flow & Stability

Strong operating cash flows supported by high-margin exchange model.

Institutional confidence: PPFAS Mutual Fund increased stake to 9.2%, making IEX its top holding

1

.

📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 30.5 Undervalued vs industry PE of 56.3

P/B Ratio ~12.1 High — reflects premium on earnings, not assets

PEG Ratio 2.51 Elevated — growth not fully justifying price

Intrinsic Value ~₹160–₹170 Slight upside from current price

⚡ Business Model & Competitive Edge

Segment Focus: Power trading, renewable energy certificates, and cross-border electricity exchange.

Moat: First-mover advantage, regulatory backing, and high switching costs for participants.

Growth Drivers

Cross-border electricity trade expansion

2

.

Increasing renewable energy participation and 15-minute block trading flexibility.

Government push for transparent and efficient energy markets.

📈 Technical & Entry Guidance

Current Price: ₹149

DMA 50/200: ₹153 / ₹171 — trading below long-term average, indicating consolidation.

RSI: 55.7 — neutral zone.

MACD: -0.70 — mild bearish crossover.

🎯 Entry Zone

Ideal Buy Range: ₹140–₹145 — near recent support.

Stop Loss: ₹130

Target: ₹170–₹180 in medium term

🕰️ Long-Term Holding Outlook

Hold if invested: Strong fundamentals, zero debt, and regulatory moat support long-term value.

Buy on dips: Preferably near ₹145 zone.

Growth Triggers: Renewable energy volumes, cross-border trade, and institutional accumulation.

⭐ Fundamental Rating

4.3

1

www.youtube.com

2

moneymintidea.com

Edit in a page