Indian Energy Exchange Ltd - Stock Valuation and Financial Performance

BSE: 540750 | NSE: IEX | Power Generation/Distribution | Small Cap

Indian Energy Exch Share Price

172.60 5.10 3.04%
as on 21-Mar'25 16:01

DeciZen - make an informed investing decision on Indian Energy Exch

Overall Rating
Bole Toh

1. Quality

2. Valuation

Somewhat overvalued

3. Price Trend

Semi Strong

Indian Energy Exchange stock performance -

mw4me loader
P/E Ratio (SA):
37.55
Market Cap:
14,935.9 Cr.
52-wk low:
133.2
52-wk high:
244.4

Is Indian Energy Exchange Ltd an attractive stock to invest in?

1. Is Indian Energy Exchange Ltd a good quality company?

Past 10 year's financial track record analysis by Moneyworks4me indicates that Indian Energy Exchange Ltd is a good quality company.

2. Is Indian Energy Exchange Ltd undervalued or overvalued?

The key valuation ratios of Indian Energy Exchange Ltd's currently when compared to its past seem to suggest it is in the Somewhat overvalued zone.

3. Is Indian Energy Exchange Ltd a good buy now?

The Price Trend analysis by MoneyWorks4Me indicates it is Semi Strong which suggest that the price of Indian Energy Exchange Ltd is likely to Rise-somewhat in the short term. However, please check the rating on Quality and Valuation before investing.

10 Year X-Ray of Indian Energy Exch:

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end.

Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Indian Energy Exchange Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good

Value Creation

Value Creation Index Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
ROCE % 60.7%74.4%73.2%71.3%71.1%60.3%61.6%65.1%52.6%53.1%-
Value Creation
Index
3.54.54.44.14.13.53.63.82.92.9-

Growth Parameters

Growth Parameters Colour Code Guide

Sales 145175199230254257317426401449515
Sales YoY Gr.-20.9%13.5%16%10.3%1.2%23.4%34.2%-5.8%12.1%-
Adj EPS 11.21.11.31.71.92.33.33.13.74.5
YoY Gr.-18.4%-1.7%17.5%26.1%11.8%23.3%40.8%-4.9%18%-
BVPS (₹) 2.42.33.23.144.35.87.78.610.512.5
Adj Net
Profit
80.110098.1121153169209294278327398
Cash Flow from Ops. 91.988.6206131138128304788-22.5300-
Debt/CF from Ops. 0000000000-

CAGR

CAGR Colour Code Guide

9 Years 5 Years 3 Years 1 Years
Sales 13.4%12.1%12.3%12.1%
Adj EPS 15.8%16.8%16.5%18%
BVPS18%21.1%21.7%21.4%
Share Price - 30.5% -7.9% 27%

Key Financial Parameters

Performance Ratio Colour Code Guide

Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24TTM
Return on
Equity %
36.850.741.243.246.844.545.447.737.437.838.8
Op. Profit
Mgn %
71.971.572.280.279.879.681.885.98484.385
Net Profit
Mgn %
55.457.249.452.660.365.865.969.269.372.977.2
Debt to
Equity
0000000000-
Working Cap
Days
4054084384892914115517184403
Cash Conv.
Cycle
-690-871-2,011-1,262-1,009-708-741-2,539-3,304-2,769161

Recent Performance Summary

Sales growth is growing at healthy rate in last 3 years 12.30%

Net Profit is growing at healthy rate in last 3 years 16.46%

Sales growth is good in last 4 quarters at 18.57%

Return on Equity has declined versus last 3 years average to 38.80%

Latest Financials - Indian Energy Exchange Ltd.

Standalone Consolidated
TTM EPS (₹) 4.5 4.6
TTM Sales (₹ Cr.) 515 516
BVPS (₹.) 12.5 12.9
Reserves (₹ Cr.) 1,029 1,059
P/BV 13.35 13.01
PE 37.55 36.54
From the Market
52 Week Low / High (₹) 133.15 / 244.35
All Time Low / High (₹) 37.02 / 318.72
Market Cap (₹ Cr.) 14,936
Equity (₹ Cr.) 89.2
Face Value (₹) 1
Industry PE 27.5

Quarterly Results

 Mar'24 YoY Gr. Rt. %Jun'24 YoY Gr. Rt. %Sep'24 YoY Gr. Rt. %Dec'24 YoY Gr. Rt. %
Sales (₹ Cr.) 121 13.3124 18.8139 28.3131 13.9
Adj EPS (₹) 1.1 15.11.1 26.51.2 281.2 16
Op. Profit Mgn % 86.47 -67 bps80.95 256 bps86.39 144 bps85.93 -69 bps
Net Profit Mgn % 78.41 99 bps75.61 435 bps76.18 -17 bps78.55 108 bps

Management X-Ray of Indian Energy Exch:

Shareholding Pattern

JavaScript chart by amCharts 3.21.5
JavaScript chart by amCharts 3.21.5Promoters:0%Institutions:48.99%Non-Institutions:51.01%

Promoter's Holding & Share Pledging

JavaScript chart by amCharts 3.21.5Sep22Dec22Mar23Jun23Sep23Dec23Mar24Jun24Sep24Dec240%2%4%6%8%10%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

Valuation of Indian Energy Exch

MRP
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MOS
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DP
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Base EPS
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DPS
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MRP: ₹ 0
DP: ₹0
Base EPS ₹:
DPS ₹:
MOS (%):
Expected EPS Growth Rate:
0%
Base 0%
50%
Expected Rate of Return:
0%
Base 0%
50%
Future PE:
0
Base 0
200
YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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YTD 1Y 3Y 5Y 10Y Max
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Event Update

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Analyst's Notes

IEX Ltd: Q3 FY25 Result Update - 27 Jan 2025

Steady performance in the electricity segment and volume growth seen in gas segment. 

Quarterly highlights-

  • During the quarter, IEX achieved electricity traded volume of 30.5 BU (+15.9% YoY)  and traded 26.52 lakh Renewable Energy Certificates (RECs; +31% YoY). 
  • Company has diversified into gas segment (volume growth +93% YoY; PAT Rs. 8.3 Cr). 
  • Management is optimistic on multiple levers for growth like (a) increase in power consumption, (b) new products and regulatory development, (c) diversity in demand/supply patterns, (d) change in energy mix.
  • In near future IEX will start trading carbon credits. It is also part of Government’s plan to set up India’s first coal exchange in CY25.
  • Overhang of coupling of power exchanges remains, which could hurt volume growth. 
  • Board of directors announced interim dividend of Rs. 1.5.

IEX Ltd: Q2 FY24 Result Update - 06 Nov 2023

Particulars

Q2FY24 (Rs. Crs)

YoY Trend

Comments

Revenue

109

+14%

Overall volume came in at 26.53 Billion Units, a 15% YoY growth.
EBITDA

92.2

+17%

Average Clearing Price for the quarter stood at Rs 5.56/unit.
EBITDA Margin

85%

+ 200 bps

 
PAT

82.9

+18%

 

Decent numbers in the Electricity segment amidst price decoupling worries. Impressive growth seen in Gas Exchange

IEX: Quarterly Result update (Q3FY22) - 02 Feb 2022

Indian Energy Exchange | Market Cap: 21,000 Cr

CMP 239| P/E 65x FY23

Results: Indian Energy Exchange (IEX) reported a growth of 38% in sales and 37% growth in power volumes year on year. Operating profit growth during the same period was 42%.

Click here to check 10 Year X-ray of Indian Energy Exchange

Key Highlights:

  • The growth in volumes was led by strong traction in new products. Volumes in traditional products were moderate due to higher base in previous quarter. We expect volumes to be strong over near term as we see gradual shift to exhanges.
  • The Real-Time Market (~17% of overall volumes) remained one of the fastest-growing electricity market segments on the Exchange, achieving a growth of 70% year on year with 4.8 BU of volumes traded during the quarter.
  • The company has announcedan interim dividend of 100% per equity share.

Outlook:The company is awaiting approval to launch the LDC (long duration contracts) comprising of fortnightly, quarterly, monthly and yearly contracts which will significantly boost volumes on the platform.  Management expects factors like rapid urbanisation, 100% electrification under SAUBHAGYA scheme, favourable policies and regulatory initiatives like Draft National Electricity Policy 2021 (NEP) and company specific initiatives like flexibility and efficient price discovery to be drivers for growth.

 

IEX: Quarterly Result update - 22 Oct 2021

Indian Energy Exchange | Market Cap: 22,705 Cr

CMP 758 | P/E 85x TTM

 

Results: Indian Energy Exchange (IEX) reported a growth of 55% in sales and 58% growth in power volumes year on year. Operating profit growth during the same period was 69%.

Click here to check 10 Year X-ray of Indian Energy Exchange

Key Highlights:

  • The growth in volumes was driven by substantial increase in electricity consumption and the preference by the distribution utilities to meet their short-term supply requirements in a competitive and flexible manner through IEX.
  • The Real-Time Market (20% of overall volumes) remained one of the fastest-growing electricity market segments on the Exchange, achieving a growth of 125% year on year with 5.3 BU of volumes traded during the quarter.
  • The company has announced two bonus shares for each equity share held, it doesn’t have any fundamental implication.

Outlook:

  • We wait for the management concall to update this section.

Indian Energy Exchange: Partial Sell - 08 Sep 2021

Today we recommend Partial SELL on Indian Energy Exchange (IEX) at ~588/share. Offlate, the stock has run up much ahead of its earnings growth. IEX has been rallying on high volumes due to inclusion in F&O (33% in a week), alongwith other stocks that entered F&O. We are not sure if this rally has any fundamental reason.

Even if we assume blue sky scenario on current data, we expect modest upside on fundamental basis. We will continue to hold lower allocation for positive surprise, if any.

We had recommended IEX early September last year at ~195/share.

It takes courage to buy stocks when there is no excitement (Low valuation) and it is painful to sell popular stocks (High valuation). Our process of fundamental analysis and valuation driven approach makes us act counter intuitively by buying low and selling high.

IEX: Quarterly Result update - 17 May 2021

Indian Energy Exchange | Market Cap: 11,184 Cr

CMP 373 | P/E 45x TTM

Recommendation | Hold

Results: Indian Energy Exchange (IEX) reported a growth of 35% in sales and 61% growth in power volumes year on year. Operating profit growth during the same period was 34%.

Click here to check 10 Year X-ray of Indian Energy Exchange

 

Key Highlights:

  • The company launched the Real-Time Market (RTM) which has shaped up well, with the product adding 3.8 billion units in last quarter. This is growing and accounted for 17.5% of the total electricity volumes. 
  • The licencing agreement with MCX to launch electricity derivatives in the market in which IEX prices will be used as settlement prices is yet pending due to approval from regulators. 
  • The resolution of matter in APTEL regarding REC has been delayed to next hearing on 14th July 2021. Hence it is expected to start only after Q2FY22.
  • The cross-border has been started with Nepal being the first country to participate. The efforts are being made to bring Bhutan & Bangladesh.

Outlook: With increase in industrial activities, the electricity consumption increased by 9% year on year while the peak demand saw 7.4% growth in Q4FY22. The participation in exchange is increasing as the exchange provides flexibility, liquidity, transparency, competitive price and no counterparty risk. This has helped company to increase the market share from 40% in FY20 to 54% in FY21.

As per the management, the localized lockdowns might impact the economic growth in FY22 but the industrial growth won’t be impacted as the companies have planned for this. The management expects a double digit growth in FY22 on account of economic activities, regulatory regimes, power demand of convention and availability of coal.

Moneyworks4me Opinion: We are optimistic on power sector as demand is coming back to match excess supply. At the same time, the inefficiencies across the value chain is expected to be reduced by way of privatisation, lower transmission loss and appropriate pricing to make everyone in the chain profitable. Green energy adoption and peak demand bodes well for volumes traded on energy exchange. Valuation may have run faster than profit growth but we see scope of valuation upgrade, so we will recommend Hold for few quarters to see benefit from operating leverage as volume grows.

 

*Costs of operations remain same even if volume grows. This leads to profit growth higher than sales growth. This favourable operating leverage can lead to better than expected profit growth. 

Key Ratios of Indian Energy Exch

Adj EPS (Rs.)

Sales (Cr.)

ROE (%)

ROCE (%)

Company Name CMP(₹)
Change ₹(%)
Market Cap
Net Sales (₹ Cr.)
Latest EPS (₹)
Net Profit Margin %
Latest P/E
Latest P/BV
PTC India 156.9 0.4 (0.3%) Small Cap 16,007 14.1 2.4 11.1 1.1
CESC 151 4.3 (2.9%) Small Cap 8,606 5.9 -3.4 24.7 1.9
Reliance Power 37.8 1.3 (3.7%) Small Cap 7,893 6 -28 6 1
JP Power Ventures 15 0.3 (2.2%) Small Cap 6,763 1.3 18.3 11.1 1.2
RattanIndia Power 10.3 0.2 (2%) Small Cap 3,364 -1.9 -4.6 - 1.2
Nava 477.5 11.2 (2.4%) Small Cap 1,468 13.6 14.4 34.2 3.5
Guj. Inds. Power 175.5 -0.7 (-0.4%) Small Cap 1,349 13.7 14.7 12.8 0.8
Waaree Renewables 858.4 14.5 (1.7%) Small Cap 867 18.1 17.2 46.7 23.6
GMR Power and Urban 111.2 3 (2.8%) Small Cap 779 14.9 85 7.3 4.1
Acme Solar Holdings 203 3.3 (1.6%) Small Cap 471 6.9 -3 28.8 2.4
Shows rows:

Profit And Loss

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Sales145175199230254257317426401449
Operating Expenses 41505546515358606471
Manufacturing Costs1111111111
Material Costs0000000000
Employee Cost 10121524253339373538
Other Costs 30373920251918222931
Operating Profit 104125143185203204259366336378
Operating Profit Margin (%) 71.9%71.5%72.2%80.2%79.8%79.6%81.8%85.9%83.9%84.3%
Other Income 322534264040405273102
Interest 0000122223
Depreciation 33310101516161920
Exceptional Items 0000000000
Profit Before Tax 133147174200232228282400389457
Tax 424660686750689796115
Profit After Tax 90100114132165178213303293341
PAT Margin (%) 62.5%57.2%57.2%57.1%65.0%69.2%67.3%71.1%73.0%76.0%
Adjusted EPS (₹)1.01.11.31.51.82.02.43.43.33.8
Dividend Payout Ratio (%)128%81%115%50%0%42%56%59%30%65%

Balance Sheet

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24

Equity and Liabilities

Shareholders Fund 197198278284363381520688768932
Share Capital 30303030303030908989
Reserves 166168248253333352490598679843
Minority Interest0000000000
Debt0000000000
Long Term Debt0000000000
Short Term Debt0000000000
Trade Payables35591728513476165635402563
Others Liabilities 298336334489208211243372268255
Total Liabilities 5295937848577066689271,6951,4391,749

Fixed Assets

Gross Block232412132134157164175193201
Accumulated Depreciation9123132338496583101
Net Fixed Assets14118119111119115110110101
CWIP 0011116543
Investments 2542763832684755147101,2471,2041,310
Inventories0000000000
Trade Receivables0100460387786
Cash Equivalents 839112811468277723364185
Others Assets1772132633555715134964
Total Assets 5295937848577066689271,6951,4391,749

Cash Flow

(All Figures are in Crores.)
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Cash Flow From Operating Activity 9289206131138128304788-22300
PBT 133147174200232228282400389457
Adjustment -28-21-30-15-28-22-18-30-49-77
Changes in Working Capital 299123-2-5-29105521-26926
Tax Paid -42-46-61-52-60-49-65-103-93-106
Cash Flow From Investing Activity 24-23-21-33-62-5-194-47370-26
Capex -6-2-1-120-4-5-16-11-9-13
Net Investments 18-49-3583-66-1-180-47271-36
Others 122815482210823
Cash Flow From Financing Activity -106-70-109-126-78-161-77-136-215-183
Net Proceeds from Shares 0000002210
Net Proceeds from Borrowing 0000000000
Interest Paid 00000-1-2-2-1-1
Dividend Paid -65-58-90-105-66-75-75-135-90-178
Others -40-12-19-21-12-85-3-2-125-4
Net Cash Flow 10-476-29-2-3833179-16791
PARTICULARSMar'15Mar'16Mar'17Mar'18Mar'19Mar'20Mar'21Mar'22Mar'23Mar'24
Ratios
ROE (%)42.1351.324847.0251.0147.7747.3750.140.2140.17
ROCE (%)60.6674.4273.1671.2671.160.3261.665.1252.6253.06
Asset Turnover Ratio0.30.310.290.280.330.370.40.320.260.28
PAT to CFO Conversion(x)1.020.891.810.990.840.721.432.6-0.080.88
Working Capital Days
Receivable Days111033332394338
Inventory Days0000000000
Payable Days0000000000

Indian Energy Exchange Ltd Stock News

Indian Energy Exchange Ltd FAQs

Company share prices are keep on changing according to the market conditions. The closing price of Indian Energy Exch on 21-Mar-2025 16:01 is ₹172.6.
Market capitalization or market cap is determined by multiplying the current market price of a company's shares with the total number of shares outstanding. As of 21-Mar-2025 16:01 the market cap of Indian Energy Exch stood at ₹14,935.9.
The latest P/E ratio of Indian Energy Exch as of 21-Mar-2025 16:01 is 37.55.
The latest P/B ratio of Indian Energy Exch as of 21-Mar-2025 16:01 is 13.35.
The 52-week high of Indian Energy Exch is ₹244.3 and the 52-week low is ₹133.2.
The TTM revenue is Trailing Twelve Months sales. The TTM revenue/sales of Indian Energy Exch is ₹515.4 ( Cr.) .

About Indian Energy Exchange Ltd

Indian Energy Exchange Limited (IEX) is the first and largest energy exchange in India providing a nationwide, automated trading platform for physical delivery of electricity, Renewable Energy Certificates and Energy Saving Certificates. The exchange platform enables efficient price discovery and increases the accessibility and transparency of the power market in India while also enhancing the speed and efficiency of trade execution.

The Exchange is a publicly listed company with NSE and BSE. IEX is approved and regulated by Central Electricity Regulatory Commission (CERC) and has been operating since June 27, 2008. In August 2016, IEX received three ISO Certifications - ISO 9001:2015 for quality management, ISO 27001:2013 for Information security management and ISO 14001:2015 for environment management.

Business area of the company

The IEX is a Power Exchange, licensed by the Central Electricity Regulatory Commission (CERC) for spot trading in power / electricity and trading of Renewal Energy Certificate (REC) and Energy Saving Certificates (ESCerts). The main activity of the company is to provide an automated platform and infrastructure for carrying out t trading in electricity units for physical delivery of electricity.

Product Segments

  • Day-Ahead Market (DAM)
  • Term-Ahead Market (TAM)
  • Renewable Energy Certificates (REC)
  • Energy Saving Certificates (ESCerts)
  • Real Time Market
  • Green Term-Ahead Market

Awards and accolades

  • IEX is respected as an industry leader and statesman, reflected in growing recognition.
  • Best E-Enabled Consumer Platform -2009 Council of Power Utilities
  • Best Performing Power Trading Company/ Exchange -2012, 2013 Power line
  • Best Power Exchange in India - 2012, 2013 and 2014 Enertia Foundation
  • Innovators in Product and Technology - 2013 Inc. India
  • Exchange of the Year - 2014 Power Business View
  • Best Power Exchange -2014 India Power Award (Council of Power Utilities)
  • Leaders in Power Market Development - 2015 Council of Power Utilities
  • Best IPO Award (Midcap Category) - 2018 Investor Relations Society (Partnered with BNY Mellon & Bloomberg)
  • Best CFO Award in 100- 500 turnover category - 2018 The Financial Express
  • Best Power Exchange in India- First view intelligence award in 2019

Milestones

  • 2008: Launched Day Ahead Market (DAM)
  • 2008: Commenced Operations with 58 participants
  • 2008: Daily cleared volume in DAM - 20 million units
  • 2009: Registered first Open Access Consumer (OA)
  • 2009: Introduced Term Ahead Market (TAM)
  • 2010: Registered participants in DAM crossed 500
  • 2011: Introduced Renewable Energy Certificate (REC) in the market
  • 2011: Traded first non-solar REC
  • 2012: Introduced 15mins contract in DAM
  • 2012: First solar REC trade
  • 2012: Signed MOU with PJM Technologies
  • 2013: Signed MOU with EPEX SPOT (France)
  • 2015: Launched round the clock TAM
  • 2016: First Indian energy exchange to get ISO certification
  • 2017: Launched Energy Saving Certificate
  • 2017: Publically listed its securities
  • 2018: Signed MOU with JPEX (Japan)
  • 2018: Daily cleared volume in DAM crossed all time high
  • 2019: Highest DAM vols in a day reached 306 MU
  • 2020: Launched two new bid types and TAM contract enhancements
  • 2020: Signed MOU with Power Ledger, Australia
  • 2020: Incorporated Indian Gas Exchange (wholly owned subsidiary of IEX)
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