IEX Share Price Target 2023, 2024, 2025, 2030 | Share Price Prediction IEX | IEX Share Price

Megha Saini

1 year ago

For long-term investors, the buy zone for IEX is around Rs. 100 and Target Price Rs. 587.

Table of Contents

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In this article, we will learn about: –

What will be the future sales of IEX?
What will be the future prices of IEX?
Will IEX turn into a multi-bagger?
Is it good to invest in IEX?
When to enter and exit from IEX share?

This article will help the investor better understand when and why to invest in IEX.

IEX Share Price Target 2023, 2024, 2025, 2030

Year	Share Price (Bear Case)	Share price (Base Case)	Share Price (Bull Case)
2022	96	112	192
2023	110	129	221
2024	127	148	254
2025	146	170	292
2026	168	196	336
2027	193	225	386
2028	222	259	444
2029	255	298	511
2030	294	343	587

Technical Chart showing IEX Share Price Targets
Credit: www.tradingview.com

If you wish to know how we have calculated these share prices read below for details.

IEX Share Price Today

About IEX

IEX is a nation wide, automated and transparent trading platform for physical delivery of electricity, renewables and certificates.
IEX commenced its operations in 2008 and got listed on NSE and BSE in 2017.
IEX enjoys monopoly status with market share of more than 94%.
Earlier there were only two exchanges IEX and PXIL. Third one HPX has now come into the picture.
IEX launched the first Gas Exchange in India in 2020 and is dealing with its trading and physical delivery.

Market Capitalization	13,942
ROCE	62.1
Debt to Equity	0.02
Profit Growth	1.84
PEG Ratio	1.98
Pledged Percentage	0

The company is almost debt-free.
ROCE is quite high which is great.
The company is working at more than 75% operating margins.
It is a fundamentally strong company where sales have grown 11 times, Net Profit has grown 15 times, Reserves have grown by 13 times and Fixed Assets have grown by 8 times in the past 11 years.
The growth in the Sales, Profits, and Reserves have been consistent YOY.
CAGR Sales have been 22% and CAGR Profit has been 24% in the past 10 years.
Cashflow has always been positive and in line with the Net Profits.
The only down side for the company is its Share Holding Pattern. There are no Promoters. FIIs have reduced its holdings from 32 to 15%. DIIs have gone from 31 to 21%. Public holding has increased from 36 to 63%.

Calculating IEX Share Price Target

We have used certain formulas to calculate IEX Share Price Target.

We will use these formulas we will do calculations in the following order : –

Future Sales
Future Net Profits
Market capitalization
Share Price Target

Assumptions

For these calculations we need certain assumptions.

Sales Growth -IEX has shown CAGR Sales of 19% for the past 10 years. Being conservative let’s assume the sales will keep growing like this by 15% every year.

PAT Margins -PAT Margins have increased from 57% to 72% in the last 5 years. Average PAT Margins have been 67% for that period. So let’s take the average for our calculations. PAT Margins = 67%.
PE – The market has given IEX PE of 22 to 90 with median PE being 36. PE measures the market sentiments for a stock.

Let’s take

PE in Base Case – 35 ;

PE in Bear Case- 30;

PE in Bull Case- 60.

IEX Future Sales and Net Profit

To calculate future sales we will multiply sales of last financial year with 1.15.

Projected Sales (Next Year)= Sales Current Year + X% of Sales Current Year, where X= Assumed Sales Growth.

Eg:- Projected Sales 2023 = Sales 2022 + 15 % Sales 2022.

To Calculate Net Profit we will multiply sales of a given year with PAT Margins (0.67)

Projected Profit = Projected Sales X Profit After Tax Margin (in %)

Year	Projected Sales ( In Cr.)	Projected Net Profit ( In Cr.)
2022	426	285
2023	490	328
2024	563	377
2025	648	434
2026	745	499
2027	857	574
2028	985	660
2029	1133	759
2030	1303	873

This table shows what Sales and Net Profits IEX can make in years to come according to our assumptions.
If you change your assumptions for Sales Growth and PAT Margins, Projected sales and Net profits will be different.
We will use this table for further calculations.

IEX Share Price Target Base Case

If IEX kept growing like this and the market has neutral sentiments for this share, it will be base case.
The market will in this case give it a median PE which is 35 in our case.
We can calucualte MCap by multiplying 35 and Net Profit in that year.

Market Capitalization (Base Case) = Projected Profit X PE (Base case)

Share price can be calculated by dividing MCap by number of shares in Cr. (89.2)

Share Price (Base Case) = Market Capitalization (Base Case) / No. of Shares

Year	PE (base case)	Mcap ( Base Case) ( In Cr.)	Share price (Base Case)
2022	35	9990	112
2023	35	11488	129
2024	35	13211	148
2025	35	15193	170
2026	35	17472	196
2027	35	20093	225
2028	35	23107	259
2029	35	26573	298
2030	35	30559	343

IEX Share Price Target Bear Case

This scenario will follow when the company is doing same sales and Net Profits but there is some bad news regarding IEX in the market or some competitor comes into the market.
In that case the market will give it a lower PE.
According to the historical data we take PE in this case as 30.
Formulas for MCap and Share Price remain same as above.

Year	PE (Bear Case)	Mcap (Bear Case) ( In Cr.)	Share Price (Bear Case)
2022	30	8563	96
2023	30	9847	110
2024	30	11324	127
2025	30	13023	146
2026	30	14976	168
2027	30	17222	193
2028	30	19806	222
2029	30	22777	255
2030	30	26193	294

IEX Share Price Target Bull Case

This is the scenario when the company is posting same results but the market becomes bullish about this stock for some reason.
Then the market starts giving higher PE to the share. In this case, we take PE as 60.
Formulas for MCap and Share Price remain same as above.

Year	PE (Bull Case)	Mcap (Bull Case) ( In Cr.)	Share Price (Bull Case)
2022	60	17125	192
2023	60	19694	221
2024	60	22648	254
2025	60	26045	292
2026	60	29952	336
2027	60	34445	386
2028	60	39612	444
2029	60	45553	511
2030	60	52386	587

IEX Share Price Target 2023

Year	Share Price (Bear Case)	Share price (Base Case)	Share Price (Bull Case)
2023	110	129	221

Currently share price of IEX has fallen 50% from its lifetime high.
This is because the sales of IEX in the last two quarters have fallen and so have the profits.
The reason for low sales is that IEX is a trading platform where the cost of electricity goes up and down depending on demand and supply.
During the COVID lockdown period the demand was low and supplies high therefore the price of electricity fell down and sales of IEX increased dramatically.
Post-COVID the demand surged again and the supply of electricity was low so the electricity prices shot up resulting in low sales 0f IEX.
IEX has already taken support at levels of 125 and may rise from this point.
Technically a rounding pattern is also forming which shows it is a good point to enter in IEX.

IEX Share Price Target 2024

Year	Share Price (Bear Case)	Share price (Base Case)	Share Price (Bull Case)
2024	127	148	254

Indian economy is growing at a faster rate and so will be the demand of electricity.
Electricity demand is expected to grow by a CAGR of 7% in FY 23-30.
IEX transparent mechanism, high liquidity helps in low cost and assured delivery which keeps it above its competitors.
Share Price will range from 127 to 254, so short term can use them as reference points to enter and exit during the year.

IEX Share Price Target 2025

Year	Share Price (Bear Case)	Share price (Base Case)	Share Price (Bull Case)
2025	146	170	292

IEX is using customer centric technology and product strategy for ease of customer service. This makes it a preferred exchange over its competitors.
IEX has a robust business model and financial strength.
It has enteed into gas exchange as well to lead India’s gas based economy. IGX has shown an YOY growth of 568% which is bound to grow further.
It has also launched GIXI- IGX gas index to represent average price of gases traded on any day.
Share prices of IEX will vary from 146 to 292 in 2025 . Dips below these prices could be time to buy and share price going more than 292 could be a time for profit booking.

IEX Share Price Target 2030

Year	Share Price (Bear Case)	Share price (Base Case)	Share Price (Bull Case)
2030	294	343	587

IEX has also started ICX- International Carbon exchange to buy, sell voluntary carbon credits.
IEX has well diversified its portfolio to build next-generation sustainable solutions.
Its new products will act as growth drivers for IEX.
IEX is enjoying favorable policies and regulatory initiatives which will further deepen the power markets.
Share Price of IEX could go as high as 587 so whenever this price is achieved investor can book profit and exit of the stock.

Conclusion

IEX is a fundamentally strong company that has grown in sales and profits over years delivering high ROCE.
Electricity is a highly regulated commodity that is a lot dependent on government policies and regulations.
IEX helps small energy producers to find buyers in the fragmented market. These small electricity producers who are using solar panels on their rooftops, using windmills are growing in number.
Government initiative to increase coal supply will further reduce prices of electricity and hence further lowering of prices at the exchange.
Future opportunities like virtual PPAs, P2P Trading, Green Hydrogen and Battery Energy Storage Systems will further strengthen the business for IEX.
Investors can use these share price targets as reference points for entry and exit.
Share Price Targets of bear case could be used as entry points and that of bear case as exit points.