IEX Shares: Should You Buy, Sell or Hold After Q3 Results?

“In our view, it is difficult for HPX and PXIL to break IEX’s network effect, and the incentives they have offered are not only transient, but also unlikely to significantly decline IEX’s market share. IEX’s monopoly right- It is too early to write off. We await volume growth in new products and restoration of supply side constraints. Maintain ‘Hold/Sn’,” Edelweiss said. IEX Shares with a target value of 148.

New opportunities in the carbon markets and demand for merchant RE look promising. That said, there are good opportunities in our view. With this, we increase EPS by 2% each for FY24E/25E. Edelweiss said the ramp up of new products like LDC is a key watchable.

“Indian Energy Exchange (IEX) 3QFY23 results came in below expectations amid volumes and margins. We’ve reduced our FY23E-25E EPS by 14% to reflect 3Q, but include some revival in our estimates. We highlighted in our January 2022 downgrade, 2022: Return of the T&D Expenditure, that IEX is at risk of moving to a competitive market versus monopoly situation with BSE-PTC-ICICI launching the new power exchange in 2022. Maintain Underperform,” Jefferies said with a target price of 110.

“We maintain the hold. Major downside risks include: (1) reduction in transaction fees, which are considered high compared to other exchanges, namely financial markets; (2) Increase in the intensity of competition from new exchanges by PTC India, or other organizations. The upside risk is: delay in new exchange’s strategy to tap market share,” Antique Stock Broking said.

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