The first and largest exchange in India is the Indian Energy Exchange(IEX). It provides an automated trading platform for the trading of electricity, renewable resources & certificates. With the whole digitization thing growing rapidly across the whole nation IEX has also expanded itself outside our country by introducing Cross Border Electricity Trade. Facilitating the ease of power procurement & efficient price discovery, IEX is powered by cutting-edge technology. Another consistent feature of IEX is the IEX share price which keeps increasing over the years, thanks to the company’s strong fundamentals. The following attributes of IEX create its own identity in this field.
| Participants | 6800+ |
| States & Union Territories | 29, 5 |
| Distribution Utilities | 55+ |
| Conventional Generators | 500+ |
Operating since 27 June 2008, IEX has 4400+ customers from industries such as food processing, textile, metal ceramics, chemicals, automobiles & real estate. With a mission to provide access to Sustainable Energy, the focus is on keeping the whole process transparent, reliable & competitive which dynamically improves IEX share price.
Certain characteristics of IEX are given below:
Day-Ahead Market
A market for physical trading of electricity is used for the provision of 15-minute time blocks in 24 hours of the day. This type of market increases the popularity of IEX even more. The price range & quantum of electricity is determined by the double-sided closed auction.
IEX has strong fundamentals which is the main reason to buy this stock
Renewable Energy Certificates
Facilitation in environmental attribute transactions is done here.
Team Ahead Market
Buying & selling of electricity via participants is done on a basis for a duration of up to 11 days. Just like the Day-Ahead Market, Team Ahead Market also ensures the success of the IEX.
Energy Saving Certificates
Under the Performance Achieve-Trade scheme, these are tradable certificates called ESCerts.
Since 2008, the year in which it was introduced, it has been authorized and approved by the Central Electricity Regulatory Commission. The participants are provided with a great opportunity to trade electricity contracts with Energy Saving Certificates (EScerts) along with Renewable Energy Certificates (RECerts). The users are also leveraged with reliable and convenient price discovery.
Along with its super-fast speed of trading electricity, the rising popularity of IEX is its fully transparent process & the power market accessibility. Being one of the two Indian trading platforms, it attracts a lot of participants since it is completely automated. Ever since its establishment, the organization has been providing reliable services; therefore, a massive surge is visible. IEX is one of the most sought-after Indian market shares due to its continuous income flow.
The price summary of IEX is summarised below. This way you’ll certainly get a deeper insight into the IEX share price details.
| Today’s High (IEX share price) | 750.45 |
| Today’s Low (IEX share price) | 700 |
| 52 Week High ((IEX share price) | 956 |
| 52 Week Low ((IEX share price) | 181 |
as per 27/10/2021
IEX Share Price Analysis- Top reasons to invest in it
There are loads of reasons for investing in this enterprise. Let’s move to the factors that prove that investing in IEX & getting involved in IEX share price is worth every penny.
Checking fundamentals is extremely important before investing in any share
● Price to Earnings Ratio
This ratio provides a great analysis of how much a customer wants to invest in the shares keeping his earnings in mind. Price/Earnings Ratio assists you to find out the company’s financial position amongst its competitors. If a low P/E ratio is there, the company’s shares are undervalued, else, overvalued.
IEX has a Price to Earnings ratio of 74.50, thus making it a good fit for long-term investment.
● Current Ratio
This quantity is used to tell whether a company will be able to complete its short-term liabilities with short-term assets or not. If it cannot then, it’s not reliable to invest in its shares. IEX has a current ratio of 1.75 therefore, it can sail through the economic bumps in the upcoming future. With this secure current ratio, its IEX share price is bound to skyrocket.
● Stable Future
The company’s abilities to gain a return on its investments are measured by Return on Assets. The rate at which the organization can turn its money into profits is what matters. With about 26.7% Return on the Asset value, IEX will have a stable future and is worthy for long-term investment.
● Return on Equity
IEX is observed to have an ROE of 47.27% which is great. Return on Equity is just like Return on Asset, it gives an idea of a company’s economy & its financial structure. With this high ROE, the IEX Share Price will also increase, which will benefit the shareowners.
● Consistent Sales Growth
Sales Growth is a metric that tells the steps taken for the company’s economy & financial upliftment are in the right direction. The sales growth for any organization is important as it solely maintains its reputation among its competitors and enhances its success rates. The investors at IEX are thrilled as its recent year growth is 23.3%. This automatically increases the IEX Share Price.
● Low Debt to Equity Ratio
The Debt to Equity Ratio should be as low as possible since it is the indicator of lower risk to investors and traders. This gives you an idea about the financial performance & capital structure of the organization. Indian Energy Exchange has a Debt to Equity Ratio of 0, which means there is no risk in investing here. You can fearlessly invest in IEX since analysts have forecasted that IEX share price will consistently increase year after year.
● Voluminous Positive Market Impact
With the significant increase in usage of electricity every year, the profits of the Indian Electricity Exchange are bound to grow just like IEX share price. By the year 2025, the usage of Electricity is expected to rise by 37% which will drive the targeted audience towards that company, outshining every other enterprise.
● Incentives on Acquisition
With the asset addition in the company, the product portfolio is solidified & new enterprise opportunities are leveraged to the traders. This provides a positive impact on the shares of the company thus, more profits and higher IEX share price.
● Seasonality Factor
Indian states like Himachal Pradesh, Uttarakhand, etc, use hydel electricity for their purposes while states like Punjab do not have such resources. Therefore, during summers they tend to face electricity deficiency. This can be easily resolved by trading surplus electricity to the other states.
● Low Electricity Prices
The supply at IEX is higher as compared to the demand, thus the prices are relatively low. This is a key point for investing in IEX as your shares will rapidly grow. In 2020, India produced around 1383 billion units but only 1271 units were consumed, therefore, a surplus was created. With this increased surplus production, the extra can be supplied which will increase IEX Share Price.
Thus, initiating your first step towards investing in the Indian Electricity Exchange will be undoubtedly a success. The above advantages & incentives provided are more than enough for you to understand the necessity of this organization. You can also learn more about investing and trading in IEX share price.
