Jefferies has maintained an Underperform rating on Indian Energy Exchange (IEX) and lowered the target price to ₹105, implying a downside of approximately 27% from the current market price of ₹144.80.
While Q1 results were in line with expectations, the brokerage emphasized that the Central Electricity Regulatory Commission’s (CERC) proposed market coupling regulation could significantly impact IEX’s future earnings trajectory.
Jefferies believes the regulation will accelerate market share loss, projecting IEX’s current 80%+ share in FY25 to decline to just 50% by FY28. Meanwhile, rival platform HPX is aiming to capture a 33% market share, intensifying competition in the power exchange space.
Disclaimer: This article is based on Jefferies’ brokerage report and does not constitute investment advice. Please consult a certified financial advisor before making any investment decisions.
