Indian Energy Exchange Ltd. share price target

INDIAN ENERGY EXCHANGE (IEX) | Power Exchange IEX has surpassed its previous highs with a stellar volume growth of 92% in the month of March 21. The company has traded 8,249 MUs of power in this month as compared to 4,291 MUs in same period last year. The growth was mainly led by higher volumes in the Day ahead market (DAM) registering a growth of ~65% yoy followed by incremental volumes from Real time Market (RTM). IEX has ended the year with the highest ever yearly electricity volume of 73,941 MUs achieving 37% YoY growth despite the lockdowns in the first two quarters of this fiscal affecting the power demand. During the year, IEX has introduced several new products to better serve its customers...

CERC has enabled the creation of a market coupling operator (to view notification, click here). The same, if implemented, can have massive ramifications on IEX and threaten the company's liquidity advantage. We await details on its implementation (if it indeed does go ahead). The above regulations, in its current form, are only an enabling provision. The implementation of: a) market coupling, and b) assignment of a market coupling operator will have to come into effect through separate...

o The electricity volumes came in at 20,175 MU in Q3FY21 as compared to 12,472 MU in Q3FY20, growth of 61.8% YoY. o Despite 43% growth in Day Ahead Market, the prices on the exchange remained subdued at `2.76 per unit,seeing a decline of 2% YoY. o The Real-time electricity registered an all time high monthly volume of...

IEX reported record revenues this quarter on the back of increased transacted volumes on its platform. IEX revenues grew c.43% yoy to 85.23 crores as compared to 59.68 crores in Q3FY20. account of operating leverage coming into play. The company's EBIDTA margin expanded by 288 bps YoY and 345 bps QoQ to 81.6% on consolidated basis. Power demand in India has also picked up since the gradual unlocking, sustained by revival of industrial activities. IEX managed to grow at a much higher pace in FY21 despite the Covid-19 disruption. The main reason for the increase in volumes was that the power traded through IEX platforms offered customers lowest possible...

(DAM) in the first nine months of FY21 with a volume growth of c.29%. Majority of the growth has been seen in the last four months to Dec'20 with a volume growth of c.58% year on year. The revival of the industrial activities. According to the data published by the National Load Dispatch Center (NLDC), the national peak demand in December'20 saw 7% YoY increase while the energy consumption registered 5% YoY growth. IEX managed to grow at much higher pace in FY21 despite the Covid-19 disruption. The main reason for the increase in volumes through IEX was the power traded through their platforms offered the customer lowest possible rates suitable for their respective cost saving measures during the lockdown....

IEX saw a marginal increase in revenue growth of ~5% on account of an increase in volumes (~13% YoY), however revenue saw a hit to the tune of ~1213% on account of no trading in REC during the quarter owing to stay order from Honourable Appellate Tribunal for Electricity (APTEL). This affected the total volume growth including REC which saw 3.8% YoY growth during Q2FY21. Other Income saw a decline of 31% YoY on account of lower interest rate as well as no MTM benefit in absence of rate cut during the quarter. Employee expenses saw a steep increase of ~40% YoY on account of fresh hiring for the new products launched during the quarter as well as increments....

Intraday, Daily & Weekly, Day Ahead Contingency Contracts Delivery after 1 hour of auction Priced Discovery: Closed, Double-sided Auction Sellers: RE generators not under feed in tariffs Buyers: Obligated entities; 1 MWh=1 REC Certificates created under Perform Achieve Trade (PAT) scheme of Ministry of Power Industry unable to reduce power consumption- Buy Energy Saving Certificates Source: IEX Investor Presentation...

Contents: Indian Energy Exchange | Long-term play in Short-Term market Summary .................................................................................................................. 3 India's ST Power market accounts for 1011% share................................................ 7 ST market: An inherent dependence remains........................................................... 9 Exchanges v/s other platforms: Flexibility an advantage........................................ 13 Expect PAT growth of 19% CAGR as volumes rise ................................................... 22 Diversifying into gas markets and other products .................................................. 27 Valuation: Buy, with TP of INR250/sh..................................................................... 28...

INDIAN ENERGY EXCHANGE (IEX) | Power Exchange Facilitating Growth in the Power Market Indian Energy Exchange (IEX) is India's leading Power Exchange with a market share of ~95%/40% of spot/short term market. The IEX offers a transparent pricing mechanism and liquidity to participants on its platform. Increasing traction of short term market with shift of volumes towards the power exchanges and with the launch of new products will aid IEX...