Buy Indian Energy Exchange, target Rs 1930: IIFL

IIFL has a buy call on Indian Energy Exchange Ltd. with a target price of Rs 1930.0 . The current market price of Indian Energy Exchange Ltd. is Rs 1585.5 Time period given by the brokerage is a year when Indian Energy Exchange Ltd. price can reach defined target.

Investment rationale by IIFL

Indian Energy Exchange (IEX), a leading power exchange in India with >98% market share, is the first electricity exchange to be listed globally. IEX would benefit from increasing salience of the short-term (ST) power market in India and rising share of exchanges within the ST market. We expect IEX’s earnings to grow at 18% Cagr through FY20ii. The stock would continue to command a premium to the market, given a strong business moat, high ROE and FCFs, impeccable management track record, and opportunities in the ST market. We initiate with BUY.