IEX shares hit 52-week low. Brokerage Has ‘Hold’ Rating Post Q2 Results

“IEX posted an in-line quarter at an operating level, but declined 10% on the PAT due to higher Treasury earnings. Supply side constraints impacted exchange volumes. This resulted in higher price discovery, leading to volumes In addition, there is a volume shift for products where IEX has a lower market share,” said brokerage and research firm Edelweiss.

Overall, the recent market share loss in Edelweiss view is temporary and it will wait for comprehensive time series data before writing off IEX’s monopoly position. “In our view, it is difficult for HPX and PXIL to break through the network effect of IEX, and the incentives offered by them are transient and unlikely to make any significant dent in IEX’s market share – a write-off of IEX’s monopoly.” We look forward to increasing volumes in new products and restoring supply side constraints.” Edelweiss maintains its hold rating iex share With a target price of 12 months 150 per.

“For the past one year, IEX has remained richly valued in view of its clean balance sheet, but was unable to gain volume due to unfavorable macros,” brokerage ICICI Direct said in a note. It has changed its rating on IEX shares from buy to hold with one. 12 month target price 155 per.

According to ICICI Direct, the key trigger for future price performance could be the introduction of long-term delivery base contracts in power exchanges, the launch of Hindustan Power Exchange which will increase competition and negative its volumes and the launch of National Open Access Registry. can significantly affect. Derivatives contract in H2FY23.

The Indian Energy Exchange (IEX) is the leading electricity exchange in India, facilitating the trading of electricity and commands a market share of 85–90% in the electricity exchange market.

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.