New products and increased use of exchange by players due to better price discovery to drive long term growth for Indian Energy Exchange

Massive provisioning for legacy NPAs impacting profitability at IDFC First Bank. Underlying business momentum is robust
May 25, 2020
Brisk sales of air-conditioners post lockdown augurs well for Voltas
June 1, 2020

Indian Energy Exchange is India’s largest electricity exchange accounting for 98% of the traded volumes. Presence of most distribution companies on the company’s platform is a key advantage. Trading volumes are driven by mismatches in regional generation and demand for electricity. There are two potential positive triggers for the company. The first is the likely approval to trade long term derivatives contract on the exchange and second is the shift in payment system by the DISCOMs to LCs which may make them more price conscious and access the exchange for meeting their requirements. Keeping in mind the valuation, we have a neutral weight rating given these considerations as also a supportive regulatory environment and launch of new products. Major risk factor is drop in volumes and government action – 29-05-2015 Price: 163.65 Rating: Neutral Recommendation: Hold

Disclosure

Elixir Equities Private Limited (hereinafter referred to as “EEPL” ) is a registered Member of National Stock Exchange of India Limited, BSE Limited and Depository Participant of the Central Depository Services Ltd. It is also a SEBI registered Portfolio Manager. We have been granted certificate of Registration as a Research Analyst with SEBI. Registration no. is INA000004787 for the period of 5 (Five) Years from 19th May, 2017.

EEPL or its associates including its relatives/analyst do not hold any financial interest/beneficial ownership of more than 1% in any of the companies covered by us. However, we or our clients, relatives and associates may have an investment / trading / arbitrage / market making (informal) position of less than 1% financial interest/beneficial ownership in the companies covered by us and recommended through this portal.

We, our associates/analyst have not received any compensation from any of the companies covered by us during the past twelve months. EEPL nor its analyst has served as an officer, director or employee of any of the companies covered by us. We do provide any service to any of the companies covered by us.The views expressed herein are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision.

The information and opinions in this report have been prepared by EEPL and are subject to change without any notice.

Our views and opinions are based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. Nothing in this website / portal / application constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.

The securities discussed and opinions expressed may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This service may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. EEPL accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this website / portal / app.

We submit that no material disciplinary action has been taken on EEPL by any Regulatory Authority.

This website/ portal / service/ app is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject EEPL and affiliates to any registration or licensing requirement within such jurisdiction.

RATING RATIONALE

EEPL endeavours to provide objective opinions and recommendations.

We assign Buy, Hold and Sell ratings on the securities covered by us.
Our rationale for these ratings has Super, Over, Neutral and Nil Weight ratings these securities as well. These Super, Over, Neutral and Nil Weight ratings serve as a guide to the quantum / weightage of that security which may be held in your portfolio.

The ratings are for long term investing for a minimum of three years unless specified.

 

Leave a Reply

Your email address will not be published. Required fields are marked *