IEX stock rises 4% as total electricity volume increases 21% YoY in August

Shares of the Indian Energy Exchange (IEX) rose nearly 4% to Rs 142 in Tuesday's trade on BSE after the firm achieved 8,469 MU total electricity volume in August 2023, registering an increase of 21% on a year-on-year (YoY) basis.

In August 2023, the country experienced its lowest August rainfall since 1901, resulting in hot weather conditions that led to an unprecedented surge in electricity demand, the company said in an exchange filing.

"On August 31, 2023, the country witnessed an all-time high peak demand of 236 GW along with the highest ever single day energy consumption of 5126 MU. Due to the combination of higher demand and supply constraints, prices on the Indian Energy Exchange (IEX) during the month reached Rs 6.89/unit, marking a 33% year-on-year increase," IEX said.

At 11.40 am, the stock was trading 1.2% higher at Rs 138.7 on BSE. However, in the last three months, the stock has fallen nearly 10%, while it has plunged 14% in the past one year.

The Real-Time Electricity Market (RTM) achieved 2,738 MU in August, registering an increase of 21% YoY. The company also achieved its highest-ever single-day volume of 135.28 million units in RTM on August 24.

The RTM segment enables distribution utilities and industries with greater flexibility and efficient optimisation of portfolios by balancing their power demand-supply on a real-time basis.

As per Trendlyne data, the average target price of the stock is Rs 130, which shows a downside of 6% from the current market prices. The consensus recommendation from 13 analysts for the stock is a 'Sell'.

Technically, the stock's day RSI (14) is at 74. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed. The day MACD (12, 26, 9) is at 1.0, which is above its center and signal Line, this is a bullish indicator.

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