IEX is india’s biggest monopoly company in power sector. IEX is in business of power trading. It is india’s biggest power trading exchanges with high volume and having more than 96 percent market share as compare to HPX and PXIL.
HPX and PXIL are two big competitors of Indian Energy Exchange which was owned by BSE and ICICI Bank. IEX having products like Day Ahead Market, Real Time Market and Green Day Ahead Market, etc.
IEX is run not run by any promoter it is fully owned by institutional companies like PTC India Financial Services ltd.
Why IEX Share Price is Falling ?
IEX share fall due to market coupling and high valuation. IEX PE ratio is stood at 40 before fall.
Market coupling could reduce IEX’s role in the power market. Under market coupling, a single entity would be responsible for price discovery and dispatching power. This could reduce the need for multiple exchanges, such as IEX.
Market coupling could lead to lower prices for consumers. If market coupling leads to lower prices for consumers, it could reduce the demand for IEX’s services.
Market coupling could be disruptive to IEX’s business model. IEX’s business model is based on providing a platform for buyers and sellers of electricity to trade. Market coupling could disrupt this model by creating a single, centralized market for electricity trading.
Overall, it is too early to say what the impact of market coupling will be on IEX’s business. However, the potential for lower prices, reduced demand, and disruption to its business model could all contribute to the recent decline in IEX’s share price.
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Some other Reasons Behind IEX Fall
Market coupling is a complex issue with far-reaching implications. It is important to consider all of the potential impacts of market coupling before making any investment decisions.
Investors should carefully monitor IEX’s performance in the coming months. The company’s share price could continue to decline if market coupling has a negative impact on its business.
Investors who are interested in investing in IEX should do their research and consult with a financial advisor.
IEX Target Price by Brokers
UBS has maintained a “Buy” rating on Indian Energy Exchange (IEX) with a target price of Rs 200 per share. UBS has also said that IEX’s market share is likely to continue to grow, as the company is the only national power exchange in India.
The brokerage firm has also said that IEX’s margins are likely to improve, as the company is able to pass on higher clearing charges to market participants.
IEX’s margins are likely to improve, as the company is able to pass on higher clearing charges to market participants. UBS is positive on IEX’s growth prospects and believes that the stock is undervalued.
IEX Stock Will Recover or Not ?
IEX share is fall from 160 level to 116 on two trading sessions. It fall more than 30 percent and traded at 120 level currently.
IT have strong support at 120-130 levels, stock go to 160 levels but unable to sustain at this levels due to policy change in power sector.
If stock break 160 level then stock will touch 200 levels in coming months but stock break support of 120 then stock wuill fall to 100 price.