This Monopoly Stock with 84.20 percent market share in the electricity market is in focus after its share fell by 10.21 percent following the reports of market decoupling, that is, introducing a single clearing price across all exchanges.
With a market capitalisation of Rs. 17,411 Crore, the stock of Indian Energy Exchange opened at Rs. 211.85, around the same level as yesterday’s close, and after opening, it made a high of Rs. 214.20, up 2.02 percent.
After the latest market decoupling news came it it fell to a low of Rs. 188.50, down 10.21 percent. Additionally, the Yearly return for the stock is 15 percent, and the past 5-year return is an impressive 237 percent.
Latest Reports
Reports are surfacing that the Centre may initiate stakeholder consultations on implementing market coupling. Power Minister Manohar Lal is expected to meet stakeholders to explain its benefits. Under market coupling, buy and sell bids from all power exchanges will be aggregated to determine a single uniform clearing price, potentially reducing IEX’s dominance and minimising its role to that of a mere trading platform.
Market decoupling for IEX means it will no longer set electricity prices. Instead, all bids from different power exchanges will be combined, and a single price will be decided centrally. This could reduce IEX’s importance and market share.
Indian Energy Exchange (IEX), established in 2008, is India’s first and leading electronic power trading platform, facilitating the trading of electricity, renewable energy certificates, and related services.
It operates various market segments, including the Day-Ahead Market (DAM), Real-Time Market (RTM), and Term-Ahead Market (TAM), and enjoys a dominant market share in the electricity market trading.
The company reported a 16.52 percent YoY increase in revenue from Rs. 121 Crore in Q4FY24 to Rs. 141 Crore in Q4FY25. On a QoQ basis, the company reported an increase of 7.63 percent in revenue from Rs. 131 Crore in the previous quarter.
Their Net profit saw an increase of 21 percent YoY from Rs. 97 Crore to Rs. 117 Crore for the same period. On a QoQ basis, the company reported an impressive increase of 9 percent in Net profit from Rs. 107 Crore in the previous quarter.
Written By Abhishek Das
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