This largecap power stock surged 200% in one year; 350% in 3 years

Shares of Indian Energy Exchange (IEX), the country’s power trading platform, rose more than 2% in early trade to hit a high of ₹245.50 after it reported strong earnings for the December quarter of the current fiscal. The power trading exchange, regulated by the Central Electricity Regulatory Commission, has also declared an interim dividend of ₹1 per equity share of the face value of ₹1 each for the financial year ending March 31, 2022.

IEX shares have delivered market beating performance in the long term as well as near term, thanks to its strong fundamentals, growth in trade volume, as well as robust financial performance. The company has declared positive results for the last five straight quarters.

The largecap stock, with a market capitalisation of 21,604 crore, has surged 214% in one year, from the level of ₹77.35 on January 25, 2021, to ₹245.50 in intraday trade today. It has delivered 357% returns to its shareholders over the last three years, while it has jumped 63% in the last six months.

However, the stock seemed to have lost momentum in the last one month by falling 4% during this period. It has dropped more than 6% in the past one week.

On Tuesday, IEX shares opened marginally lower at ₹240 against previous close price of ₹240.25 and declined as much as 3.4% to hit an intraday low of ₹232. In the volatile trade so far, the stock rose as much as 2% to hit a high of ₹245.5 during the session.

The largecap power stock is technically in a ‘mildly bullish’ range, with stock trading higher than 100-day and 200-day moving averages, but lower than 5-day, 20-day, and 50-day averages.

IEX reports positive results for five quarters

Power exchange platform IEX has reported positive results consistently for the last five quarters. For the December quarter of 2021, the company posted a nearly 39% rise in consolidated net profit to ₹80.73 crore, aided by higher revenues. The company had reported a net profit of ₹58.14 crore in the quarter ended December 31, 2020. The total income of the company increased to ₹130.77 crore in Q3FY22, from ₹96.09 crore in the year-ago period.

The board of the company has also approved an interim dividend of ₹1 per equity share, for which February 4 has been fixed as the record date for the purpose of ascertaining the eligibility of the shareholders for the payment of interim dividends. In the September quarter of the current fiscal, the company had also approved two-for-one bonus issues under which existing shareholders would get two shares for every one share held by them.

For the third quarter of fiscal 2022, IEX has registered a 37% year-on-year growth in trade volume to 27,677 million units (MU) across all its market segments, driven by substantial increase in electricity consumption.

On the gas market front, the Indian Gas Exchange IGX recorded trade volumes of 3.6 million metric million british thermal unit (MMBtu), on the back of consistent growth in terms of volumes as well as the eco-system development.

For the full financial year ended March 31, 2021, the consolidated net profit rose to ₹205.43 crore as compared with ₹175.71 crore in the previous fiscal. Total income increased to ₹356.23 crore, from ₹297.40 crore in the fiscal 2020.