Indian Energy Exchange Ltd. share price target

The launch of Real-Time Market (RTM) has shaped up well, with the product adding 4.6BUs in 1Q and accounting for 22% of total electricity volumes. With an oversupplied market, new product launches, and strong competitive positioning, we expect market share gains to continue for the company within the Short-Term (ST) Market. However, with the recent runup in stock price, IEX now trades at 39x Sep'23 EPS and prices in this growth. We reiterate our Neutral rating, with revised TP of INR410/sh. Profitability rises on strong volumes...

INDIAN ENERGY EXCHANGE (IEX) | Power Exchange .....driven by customer centricity Another strong quarter for IEX with volume growth of almost 44% mainly driven by competitive power prices, increasing consumption of electricity and strong performance of the new market segments. The company has traded 21,266 MUs of power in this quarter as compared to 14,847 MUs in same period last year. The growth was mainly led by incremental volumes from Real time...

The launch of the Real-Time Market (RTM) has shaped up well, with the product adding 3.8BUs in 4Q and accounting for 17% of the total electricity volumes. With an oversupplied market, new product launches, and a strong competitive positioning, we expect market share gains to continue for the company within the Short-Term (ST) Market. However, with the recent runup in stock price, IEX now trades at 36x FY23 EPS and prices in this growth. Accordingly, we Downgrade to Neutral, with revised TP of INR375/sh. Strong volumes drive growth in operational profit IEX's 4QFY21 S/A EBITDA was up 49% YoY to INR808m (in line with our est),...

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...

Indian Energy Exchange (IEX) is India's no.1 power exchange. We expect increasing power surplus and continuous improvement in power transmission capacity & reach to drive strong growth for the short-term power trading market. CRIS (Crisil Research & Infrastructure Solutions) forecasts the same to grow at a CAGR of over 20% in FY17-22E and forecasts the share of energy exchanges to increase from 34.5% in FY17 to 43% in FY22. This augurs well for IEX given its dominant market share (avg. 93.5% in the last 5 years). We believe that IEX is well placed to drive sustainable growth given the market opportunity, strong & experience management and highly scalable & proven technology...

Their participants registered to trade electricity contracts are located across 29 states and 5 union territories of India and include 50 distribution companies, over 400 electricity generators and over 3,900 open access consumers. In FY17, such participants traded...

Issue Open: Oct 09 - Oct 11, 2017,Price Band: Rs. 1645 - 1650, Issue Size: 6,065,009 Equity Shares, (Entirely Offer for sale), Offer Size: Rs.997.69 crs - 1000.72 crs Indian Energy Exchange Ltd IPO

Indian Energy Exchange Ltd. (IEX) is the largest exchange for the trading of a range of electricity products in India, in terms of traded contract volumes in FY17 according to the Central Electricity Regulatory Commission (CERC). Electricity products traded over its electronic trading platform comprise (i) electricity contracts in blocks of 15 minutes in the Day-Ahead-Market (DAM), (ii) electricity contracts for fixed terms in the future, such as intra-day contracts, day ahead contingency contracts and contracts up to 11 days ahead, known as the Term-Ahead-Market (TAM) and (iii) renewable energy certificates (RECs). IEX has commenced the trading of energy saving certificates (ESCerts) on Exchange on September 26, 2017. It is one of two exchanges in India that offer an electronic platform for the trading of electricity products and have a substantial majority market share among the power exchanges in India. The DAM constitutes the substantial majority of the...

Indian Energy Exchange (IEX) is the dominant exchange in India for trading electricity in the country. It has a market share of over ~98% of the volumes in the power exchange industry. Outlook & Valuation: IEX is likely to continue its current growth trajectory as the short-term electricity market would continue its migration away fro..

Indian Energy Exchange (IEX) is the dominant exchange in India for trading electricity in the country. It has a market share of over ~98% of the volumes in the power exchange industry. Outlook & Valuation: IEX is likely to continue its current growth trajectory as the short-term electricity market would continue its migration away fro..

Indian Energy Exchange Ltd. (IEX) is one of two exchanges in India that offer an electronic platform for the trading of electricity products and have a substantial majority market share in India. The company is coming up with a public issue, were it will sell 6.1mn...