IEX - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📈 Investment Analysis: Indian Energy Exchange Ltd. (IEX)

Investment Rating: 4.1

🧮 Fundamental Strengths

ROE: 40.7% and ROCE: 53.4% are exceptional — clear evidence of superior capital efficiency and profitability.

EPS: ₹5.08 supports consistent earnings, with a healthy quarterly PAT increase (25.2%), confirming stable financials.

Debt-to-Equity: 0.01 — virtually debt-free, a major plus for long-term sustainability.

Dividend Yield: 2.23% — attractive for steady income investors.

Industry PE: 71.4 vs. Stock PE: 26.5 — undervalued relative to peers, suggesting potential for re-rating.

📉 Valuation & Technical Trends

PEG Ratio: 1.99 — slightly stretched for growth expectations, implying some valuation risk.

RSI: 22.7 — indicates deep oversold territory, possible accumulation opportunity.

MACD: -13.0 — confirms short-term bearish trend.

Price trading well below both 50-DMA & 200-DMA — clear technical downtrend, potential bottoming-out zone.

Volume lower than 1-week average, pointing to reduced short-term interest but no panic selling.

🎯 Ideal Entry Zone: ₹128 – ₹138 This bracket aligns with recent support levels, oversold RSI, and valuation comfort.

🧭 Holding / Exit Strategy

✅ If You're Already Invested

Suggested Holding Period: 3–5 years for steady compounding.

Maintain holding if

ROE stays above 35%

EPS grows toward ₹6.5+ in the next 2–3 quarters

PEG trends down below 1.5 due to improved earnings

PAT stabilizes above ₹120 Cr consistently

🚪 Exit Strategy

Partial Exit: Around ₹190–₹210 if price rebound is supported by bullish RSI & MACD crossover.

Full Exit If

ROE drops below 25% for 2+ quarters

PEG continues rising above 2.5

Price dips below ₹130 with increasing volume and continued technical weakness

Dividend policy weakens or institutional activity turns negative

IEX presents a compelling case of strong financials trapped in a short-term technical slump — a classic value-with-potential-reversal setup. If you're building a portfolio around infrastructure-tech or clean energy digitization, IEX deserves a spot on your radar.

Would you like help comparing it with other players like Power Grid, Adani Transmission, or Tata Power to fine-tune your sector exposure? I’ve got the dashboards ready to go ⚡📊

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