IEX Share Price: Indian Energy Exchange (IEX) shares are consistently trading under pressure due to regulatory challenges, threatening its market dominance
and profitability. In fact, IEX, once retail favourite, has emerged as one of top wealth destroyers of the Dalal Street. At CMP of Rs 133.69 (price as on December 29), IEX shares are currently hovering around four-year low levels, moving 47 per cent northward. Most recently, reports suggested that the Central Electricity Regulatory Commission (CERC), a statutory body regulating the power sector, has introduced a framework for Virtual Power Purchase Agreements (VPPAs). This has further raised the concerns about potential implications for trading activity. Additionally, CERC is reportedly considering lowering the transaction fees charged by the power exchanges. If reports are to go by, the regulator may lower the transaction charge to Rs 1.5 per kilowatt hour. This implies a reduction of 25 per cent from the current fee structure. For Term Ahead Market (TAM), the fee could be lowered to Rs 1.2/kWh. Commenting on IEX stock, Pradip Halder, founder of PHD Capital, said that view is negative on IEX. IEX is a sell on each and every bounce. Reports say that power trading may shift to a market coupling system and this will reduce IEX’s pricing power and market share. If this happens, volumes and margins will see adverse impact in the future. He said that overall sentiment in IEX is weak as uncertainty around policy changes is hurting the stock. "Until there is clarity on regulations, IEX shares may remain under pressure," he said. "The day IEX cracked below Rs 190, the counter slipped to Rs 160 and is on a downward trajectory. IEX is clearly struggling. IEX can show the levels of Rs 140-142 but don't get trapped as it is a dead cat bounce. The chart of IEX is very weak and if it breaks Rs 130, the fall could extend towards Rs 115-110. So my suggestion will be to exit on bounce," he said. IEX shares have delivered a weak performance over the past years, with the counter declining 25 per cent in one year, 20 per cent in two years and 5 per cent in three years, according to BSE data on December 29. IEX shares have a 52-week range of Rs 215.40 - Rs 130.35. From a valuation perspective, IEX currently trades at PE 26.54 and its PB ratio stands at 10.91. Interestingly, mutual funds in the September 2025 quarter raised their stake in IEX to 29.42 per cent from 27.83 per cent in the June quarter. FIIs, however, trimmed their stake significantly in the same period to 13.19 per cent from 18.53 per cent. In the month of November, IEX had posted 17.7 per cent rise in its trade volume at 11,409 million units as compared to the year-ago period. VIDEO
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
