The shares of this leading electricity exchange platform fell nearly 13 % after a report suggested that the government may implement market coupling for power exchanges by FY25.
Share price variations:
With a market capitalization of Rs. 21,333.00 crores, the shares of Indian Energy Exchange (IEX) opened the trading session at Rs. 240.40 nearly matching the previous day’s close of Rs. 239.37 touching a 52 week high and moved down to Rs. 209.05 falling 12.66% to the previous days close. The stock closed at Rs. 211.80 down 11.52% from the previous close.
Reason for the Fall:
The recent movement in IEX’s stock price appears to be influenced by the report that the government may take steps on the implementation of market coupling for power exchanges by FY25. Under this system, buy and sell bids from all power exchanges across India are combined to determine a single, uniform Market Clearing Price for electricity.
Under this model, electricity will be traded at the same price across all exchanges at any given time. If implemented, power exchanges will serve primarily as platforms for receiving bids, while the actual power will be dispatched directly to the buyers based on the matched bids.
Also Read: Defence stocks trading at discount of up to 35% to keep on your radar
Financial Performance:
For Q1FY25 the company reported a net profit increase of 26 % to Rs. 93.42 crores compared to Rs. 74.14 crores in Q1FY24, while revenue from operations marked an increase by 18.76% to Rs. 123.56 crores from Rs. 104.04 crores in comparison to the same period.
In FY24 the company generated about 49%of its revenue from services in the Day Ahead Market, 27% from services in The Real-Time Market and the rest 24% from certificates, green energy etc.
About the company:
Indian Energy Exchange, holding an 82% market share in India’s electricity exchange, is the country’s leading energy marketplace. It offers a nationwide automated trading platform for the physical delivery of electricity, renewables,
and certificates. IEX’s ecosystem includes over 7,600 participants across 28 states and 8 union territories, consisting of more than 60 distribution utilities, 700 conventional generators, and 1,900 renewable energy generators and obligated entities.
It also has a strong base of 4800+ commercial and industrial consumers representing industries such as metal, food processing, textile, cement, ceramic, chemicals, automobiles, information technology industries, institutional, housing, and real estate, and commercial entities.
Also Read: Stocks to Track: 3 Companies that forays into defence, semiconductor and renewable sector
Written By: Joseph Pv
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.
