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: https://www.iexindia.com/Default.aspx
Checked the stock price and other its technicals..
Share price: <180 https://www.moneycontrol.com/india/stockpricequote/diversified/indianenergyexchange/IEE
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)
- A growth sector – power, electricity – CONSUMPTION
- IEX has the early bird advantage
- Its the market leader
- The management looks professional – the CEO is a veteran in IT sector
- Consistent net profit track record
- No promoters – Professionally managed
- No Debt – No shares Pledged
- A glance at the technology (stack) used for their platform is refreshing – Latest tech
- Down the line, number of transactions will keep growing
- The sector is still heavily controlled by the government – bureaucratic
- State government Electricity boards have monopolies and many are not ready for change
- 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..