⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
IEX - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | IEX | Market Cap | 11,134 Cr. | Current Price | 125 ₹ | High / Low | 215 ₹ |
| Stock P/E | 24.1 | Book Value | 13.5 ₹ | Dividend Yield | 2.40 % | ROCE | 53.6 % |
| ROE | 40.5 % | Face Value | 1.00 ₹ | DMA 50 | 137 ₹ | DMA 200 | 152 ₹ |
| Chg in FII Hold | -1.78 % | Chg in DII Hold | -1.48 % | PAT Qtr | 115 Cr. | PAT Prev Qtr | 122 Cr. |
| RSI | 35.3 | MACD | -3.79 | Volume | 76,78,951 | Avg Vol 1Wk | 97,49,935 |
| Low price | 122 ₹ | High price | 215 ₹ | PEG Ratio | 1.98 | Debt to equity | 0.00 |
| 52w Index | 3.01 % | Qtr Profit Var | 11.6 % | EPS | 5.18 ₹ | Industry PE | 58.4 |
📊 Core Financials
- Revenue & Profitability: PAT declined slightly from 122 Cr. to 115 Cr. QoQ (-5.7%), though overall profitability remains strong.
- Margins: ROE at 40.5% and ROCE at 53.6% are excellent, reflecting strong efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.00 highlights a debt-free balance sheet, ensuring financial stability.
- Cash Flow: Dividend yield of 2.40% provides steady shareholder reward.
💹 Valuation Indicators
- P/E Ratio: 24.1 vs Industry PE of 58.4 → undervalued compared to peers.
- P/B Ratio: Current Price (125 ₹) / Book Value (13.5 ₹) ≈ 9.26, expensive relative to book value.
- PEG Ratio: 1.98 suggests valuation is stretched relative to growth prospects.
- Intrinsic Value: Current price near 122 ₹ (low) offers attractive entry zone compared to historical highs (215 ₹).
🏦 Business Model & Competitive Advantage
- Indian Energy Exchange (IEX) operates as the leading power trading platform in India, enabling electricity and renewable energy transactions.
- Competitive advantage lies in monopoly-like market position, regulatory backing, and debt-free structure.
- Overall health is strong, but growth prospects need to justify current valuation multiples.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive entry between 120 ₹ – 130 ₹, near support levels.
- Long-Term Holding: Suitable for investors seeking exposure to India’s energy trading sector, but monitor earnings growth and institutional investor sentiment.
✅ Positive
- Debt-free balance sheet ensures financial stability.
- Strong ROE (40.5%) and ROCE (53.6%).
- Dividend yield of 2.40% provides steady income.
- Undervalued compared to industry PE (24.1 vs 58.4).
⚠️ Limitation
- P/B ratio (9.26) indicates expensive valuation relative to book value.
- PEG ratio (1.98) suggests growth may not fully justify valuation.
- Quarterly PAT declined slightly, showing earnings pressure.
📉 Company Negative News
- FII holdings decreased (-1.78%) and DII holdings decreased (-1.48%), showing reduced institutional confidence.
- Stock trading below DMA 50 (137 ₹) and DMA 200 (152 ₹) indicates bearish technicals.
📈 Company Positive News
- Dividend yield of 2.40% provides consistent shareholder reward.
- Strong ROE and ROCE highlight operational efficiency.
🏭 Industry
- Industry PE at 58.4 is much higher than IEX’s PE, highlighting undervaluation.
- Energy trading sector growth driven by renewable adoption and power market reforms.
- IEX benefits from dominant market position and regulatory support.
🔎 Conclusion
- IEX offers strong fundamentals with excellent return ratios and a debt-free balance sheet.
- Valuation is attractive compared to industry peers, though growth prospects must improve to sustain multiples.
- Best suited for long-term investors entering near 120–130 ₹, with potential upside as India’s energy trading sector expands.
Would you like me to also prepare a comparative HTML report of IEX versus other energy sector players like Power Grid and NTPC to highlight relative valuation and efficiency?