Investing 101: IEX Is A Good Investment Idea That Can Fetch Decent Returns
Finance 101

Investing 101: IEX Is A Good Investment Idea That Can Fetch Decent Returns

Investing 101: IEX Is A Good Investment Idea That Can Fetch Decent Returns

According to experts, the Indian Energy Exchange or IEX is the perfect opportunity for anyone who is looking to win big. A company that started off as a gas exchange venture back in 2008, the current IEX share price is at Rs.758.50, which is noted to be a 59% jump from the previous quarter of June 2021. The Indian Energy Exchange is a single platform that offers physical short-term delivery of power under the Electricity Act of 2003.

Given the IEX share price at present, many people are impressed with this largest energy exchange in India, which is clearly a monopoly. With a whopping 95% of the current market share, along with a return rate of 165% in one year alone, it definitely seems like a good investment idea. However, that is not enough and so, to further support why investing in IEX, especially at the current IEX share price, is a good idea, let us discuss the top reasons that make this stock worthy.

Constant Technological Upgradation

The current trend in the market of quick adoption of technologies for day-to-day operational activities has led to multiple companies going out of business or facing a loss. However, IEX is known to be an active participant in this technological up-gradation race, adding newer and more efficient practices to promote effective power trading within the country. This is one of the reasons why the experts believe that the IEX share price is expected to rise further and will therefore give back higher returns than ever before.

Higher Profit Potential

Given the 95% market share of IEX today, it is fair to say that the revenues of the Indian Energy Exchange are favorable for the company at present. Increasing revenues indicate the overall rise in profits with every passing year, making IEX a very good investment for anyone who is looking to make big money in the long run.

Expected Market Takeover Of Surplus Power

According to news, two power plants by Adani and Tata power are expected to make their entrance in Gujarat to successfully sell electricity in order to ease the pressure on the power supply and coal supply situation. Given this potential situation, the selling bids for power exchange are expected to increase, with power prices decreasing simultaneously. However, this buzz has created sudden desperation among the distribution utilities to buy the power at any given price. The Indian Energy Exchange cashed on this opportunity, leading to the current average price which is Rs. 6/7, as opposed to the previous price of Rs. 2.95/-. This is why it is expected that the IEX share price, given the smart mind of the leaders of the company, is said to increase further, making it a good investment for big returns.

Increasing Demand

During lockdown at the time of the global pandemic, when the majority of the industries are to limit their operations and switch to online mediums, IEX was already trading online, whether it be a gas exchange, renewable energy exchange, green theme energy, etc. This significantly highlighted the increasing demand with the highest-peaking demand of power in June 2021 with approximately 191.5 GW being used up in consumption. Then, to further prove the peaking demand for IEX power supply, the consumption trend grew further upwards to approximately 200 GW for India alone. This clearly indicates massive opportunities as well as increased earnings for the Indian Energy Exchange, thereby increasing the IEX share price in the near future.

Upcoming Product Launches

Another reason that guarantees IEX to be a good investment to win big is its constant involvement with launching new products within its umbrella. At present, IEX is expected to enter the real-time market which is backed up by renewable penetration and power management. Additionally, it is also set to launch longer-duration contracts that can further increase the opportunities for gaining a larger market share in the near future. This means investing with the current IEX share price is a smart decision as it might go up and guarantee better returns for you in the future.

Overall, to conclude, with the competitive positioning of the Indian Energy Exchange, along with a clean balance sheet and a range of new product launches coming up, it is fairly easy to claim that it is a very successful investment for anyone today. Whether you are new in the market of the stock exchange or have been studying the same for a long time, the current market share owned by the IEX makes it worth your money. Lastly, with Mr. Satyanarayana Goyal’s guidance who has 40 years of experience in the power sector, the company is expected to reach newer heights in no time. So, go invest with IEX today and see for yourself the numerous learnings you gain along with increased monetary earnings on the side.

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