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After Hitting 10% Upper Circuit On Friday, IEX Shares Fell Today. Should You Buy?

Indian Energy Exchange stock has rallied 125 per cent as against a 12 per cent rise in the S&P BSE Sensex in past six months. While over the past year, it zoomed 273 per cent, as compared to a 31 per cent surge in the benchmark index.

After Hitting 10% Upper Circuit On Friday, IEX Shares Fell Today. Should You Buy?
After Hitting 10% Upper Circuit On Friday, IEX Shares Fell Today. Should You Buy?
outlookindia.com
2021-12-06T14:19:37+05:30

The shares of the Indian Energy Exchange (IEX), which had hit 10 per cent upper circuit on BSE on Friday, plunged nearly 1 per cent on Monday.

The share was trading at Rs 253.85 at 2:15 PM on NSE.

On Friday, IEX share hit the upper circuit as the traded ex-bonus with the record date set for December 6 viz Monday.

According to a report published in Mint, the board of the company, on October 21, 2021, had approved an issue of bonus shares (2:1) wherein shareholders will get two bonus shares for every one share held by them.

Interestingly, in the past six months, IEX stock has rallied 125 per cent as against a 12 per cent rise in the S&P BSE Sensex, while over the past one year, it zoomed 273 per cent, as compared to a 31 per cent surge in the benchmark index.

With this, the investors may be skeptical or rather unsure about what the future will hold for IEx share. Here are the views of some analysts and brokerage houses that will help investors or traders to know more about IEX share future movement:

ICICI Securities

IEX announced bonus shares on October 21, 2021. The record date for the same is December 6, 2021, while the ex-date for the same was December 3, 2021. Consequently, the Indian Energy Exchange’s share price has adjusted to Rs 249 from Rs 747. Accordingly, the investment firm’s target price stands revised to Rs 305 per share. The brokerage house has maintained a BUY recommendation on the stock, according to a report in Mint.

Ravi Singh, Head of Research & Vice President, ShareIndia

The company received shareholders' approval for the issue of bonus shares in late November. It also received shareholders' approval to increase the authorised share capital and consequent alteration in the capital clause of the memorandum of association.

With around 95 per cent market share in the power exchange market, IEX seems a good bet for a long-term investment. The valuations also showed strong growth with promising financials. Technically, the momentum indicators like RSI, MACD and Stochastic are showing an uptrend on daily charts for the target of Rs 270 per share in coming sessions, the report added.

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