IEX Shares Zoom 3% As Monthly Volumes Increase By 29%

Indian Energy Exchange shares surged 3% on Thursday morning after the power exchange recorded a 29% increase in monthly volume during May.

What Happened: IEX saw an overall monthly volume of 10,633 million units, increasing by 28.9% from the previous year. The electricity volumes jumped by 21% year-on-year to 9,568 million units. 

The renewable energy certificates soared by 640.3% year on year to 1,055 million units. The real-time electricity market saw its highest-ever monthly trading volume with 3,352 million units, rising by 38.3%. Day-ahead market volume rose by 7.5% to 4,371 million units. 

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In its March quarter results, IEX had recorded a 9.45% rise in its net profit to ₹96.68 crore. Its revenue from operations surged 13.31% to ₹121.28 crore in the quarter. 

Analyst Views: Nuvama Institutional Equities had retained its "reduce" call with a target price of ₹119 as it expects a shift to long-term power purchase agreements from spot markets because of the country’s power deficit and awaits the market coupling decision from Central Electricity Regulatory Commission. The brokerage sees limited upside despite factoring in  17% volume growth in FY24–26 and 14-15% in the long term. 

Elara Securities maintained its "buy" call with a target price of ₹188 due to rise in short-term power market share in the country, along with increase in market share of the power exchanges. IEX's subsidiary Indian Gas Exchange and the an upcoming carbon credit exchange also offer an edge to investors, it said. 

Price Action: Shares of IEX shot up 3.47% to ₹162.40 on Thursday morning session. 

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