IEX shares: Should you buy, sell or hold post Q3 results?

“In our view, breaking IEX’s network effect is difficult for HPX and PXIL, and incentives offered by them are not only momentary, but unlikely to significantly dent IEX’s market share. It is premature to write-off IEX’s monopoly. We await volume ramp up in new products and restoration of supply side constraints. Maintain ‘HOLD/SN’,” said Edelweiss on IEX shares with a target price of ₹148.

New opportunities in Carbon markets and Merchant RE demand looks promising. That said, there are decent opportunities in our view. With that, we enhance our EPS by 2% each for FY24E/25E. Ramp up of new products such as LDC is a key monitorable, Edelweiss added.

“Indian Energy Exchange’s (IEX) 3QFY23 results came below expectations between volumes and margins. We lower our FY23E-25E EPS by 14% to reflect 3Q but have some revival factored in our estimates ahead. We highlighted in our Jan. 2022 downgrade, 2022: Return of the T&D Spend, that IEX faces the risk of moving to a competitive market vs a monopoly situation with BSE-PTC-ICICI launching the new Power exchange in 2022. Maintain Underperform,” said Jefferies with a target price of ₹110.

“We retain HOLD. Key downside risks include: (1) A cut in transaction fee, which is touted to be higher than other exchanges, namely financial markets; (2) Increased competition intensity from new exchange by PTC India, or other organizations. The upside risk is: delay in new exchange’s strategy to tap market share,” said Antique Stock Broking.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.