Indian Energy Exchange IEX – Stock analysis

Indian Energy Exchange Limited

An Exchange or a Platform where Electricity is TRADED

It took some amount of googling to understand this better… Though I first heard about this, when I was an expat in Chile, one of the pioneers in Energy Sector reformation. Took a tour of their official site

Check this:

Checked the stock price and other its technicals.. 

Share price: <180

At the outset, my observations are, 

  • It has recovered quick from the Covid-19 low of March 25th and it has gained its pre Covid-19 valuation. 
  • P/E ratio looks over rated 31.33
  • EPS – 5.94

The P/E ratio, we can’t consider in its face value as high.. because we don’t have much competitors in this space and therefore comparison or to arrive at industry standard is tough. IEX is a market Leader

The below white papers helped me in understanding the operating & business model of this platform. 


Like any exchange they make profits from commissions of the transactions. Also from their admission fees, annual subscription fees etc., (running into lakhs)


  1. A growth sector – power, electricity – CONSUMPTION
  2. IEX has the early bird advantage
  3. Its the market leader
  4. The management looks professional – the CEO is a veteran in IT sector
  5. Consistent net profit track record
  6. No promoters – Professionally managed
  7. No Debt – No shares Pledged
  8. A glance at the technology (stack) used for their platform is refreshing – Latest tech
  9. Down the line, number of transactions will keep growing


  1. The sector is still heavily controlled by the government – bureaucratic
  2. State government Electricity boards have monopolies and many are not ready for change
  3. Covid-19 will dent the consumption demand from the industrial space – short term

My Clarion Call:  Going to Buy this and watch closely in the short term. It will be a good long term buy – a multi-bagger..

#PeterLynch #ValueInvesting