Shares of this monopoly stock under the ‘small-cap’ category jumped 4 percent in Thursday’s trading session after the company displayed strong business performance for the period ended September 2023, i.e., Q2FY23-24.
With a market capitalization of Rs 11,934.33 crores, the stocks of Indian Energy Exchange Limited (IEX), having a monopoly in the trading of electricity, opened their trading hour on Thursday at Rs 132.05 and currently trade at Rs 132.80. The company’s scrip witnessed an intra-day high of Rs 135.20 exhibiting a gain of around 4 percent as compared to the previous close of Rs 129.65 apiece.
Such bullish stock price movements are observed today after the company, in a regulatory filing with the Bombay Stock Exchange (BSE) dated 4th October 2023, reported some key business updates for Q2FY3-24.
The company achieved an overall volume of 9,147 million units (MU), increasing 13 percent YoY, including green market trades of 230 MU, 5.15 lakh renewable energy certificates (RECs), and 1.06 lakh energy saving certificates (ESCerts).
The main highlight is the Real-Time Electricity Market (RTM) which grew 33 percent YoY by achieving 2,923 Million Units.
During the recent quarters, the company saw a marginal dip in numbers pertaining to operating revenues as well as after-tax profits. The operating revenues declined from Rs 107.03 crores during Q4FY22-23 to Rs 104.04 crores during Q1FY23-24, and, the after-tax profits, during the same time horizon, fell from Rs 82.8 crores to Rs 74.21 crores.
As a result of the above, the profitability metrics such as the return on equity (RoE) and the return on capital employed (RoCE) reduced with the former falling from 51.28 percent during FY21-22 to 41.56 percent during FY22-23, and, the latter moving down from 66.24 percent to 53.81 percent.
Due to the monopoly status of the company, the net profit margins have stayed healthy despite the reduction in bottom-line numbers. The margins rose from 71.6 percent during FY21-22 to 76.31 percent during FY22-23.
The latest shareholding pattern, for the quarter ended June 2023, portrays the Retail Investors holding a 61.61 percent stake, and the Foreign Institutional Investors (FIIs) holding a 17.28 percent stake in the company.
Indian Energy Exchange Limited (IEX) is a power trading platform provider based in India offering an automated medium for the physical delivery of electricity as well as trading of electricity products. The prime business segments of the company comprise Gas exchange and Power exchange.
Written by Amit Madnani
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
