Hold Indian Energy Exchange; target of Rs 112: Prabhudas Lilladher

Moneycontrol • 2 days ago

Original source

Key Investment Pillars

  • IEX reported Q2FY27 PAT of INR 1,328 mn, up 9% YoY, driven by other income and steady electricity volumes.
  • Coupling regulations have been delayed, with implementation expected in 1.5-2 years, extending the runway for IEX's uncoupled earnings base.
  • IEX plans to sell down its IGX stake to 25% by December 2026 and is evaluating a buyback.
  • Renewable energy growth and storage demand are expected to drive long-term growth.

Thesis Validation Checklist

  • Monitor progress on coupling regulations and implementation timeline.
  • Track IEX's volume growth, particularly in the renewable energy segment.
  • Watch for updates on the IGX stake sale and potential buyback.
  • Observe the development of India's energy storage and renewable energy landscape.