Indian Energy Exchange Limited

Financial Services — Capital Markets · NSE

₹107.55−₹0.05 (−0.05%)

DalalBaazaar Score

78 / 100

🟢 Good

Verdict

ATTRACTIVE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Indian Energy Exchange Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Indian Energy Exchange Limited provides automated trading platform for physical delivery of electricity, renewable energy, and certificates.

IndustryCapital Markets

SectorFinancial Services

Employees179

Annual revenue₹615 Cr

How does it make money?

Turns over ₹615 Cr a year. Of every ₹100 of sales, about ₹80 reaches shareholders as profit, with ₹98 left at the operating level before interest, tax and depreciation. Each of its 179 employees supports ₹3.44 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.44 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, HDFC LIFE INS CO LTD, SBI LIFE INSURANCE CO LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE13.7%

What is the outlook?

6 analysts covering the stock expect revenue to shrink about 0.6% and earnings to grow about 2.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth-0.6%

Est. earnings growth+2.3%

Analysts6

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +54% while net margin moved +5% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+54%

Margin effect+5%

DalalBaazaar Score

78/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 18.9x is within a normal band
✓ P/E is 52% below its own historical median of 39.3x — cheap by its own standards
✗ P/B of 7.05x is a steep premium to book
✓ Dividend yield of 3.72% pays you to wait

Quality vs. Valuation

Company Quality

82/ 100

Excellent

How good the business is, ignoring the share price entirely.

Valuation

69/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

18.9x

3Y Median

39.3x

40 monthly readings · mean 37.1x · range 19.3x–56.2x

Sector Median

58.4x

median of 3 sector peers

🟢Current valuation is approximately 52% below its 3y median of 39.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 68% below the peer median of 58.4x.

vs. its own history

Cheap

39.3x median over 40 months · -52%

vs. sector peers

Cheap

58.4x median of 3 peers · -68%

vs. generic bands

Fair

15x–35x

EV/EBITDA

15.7x

PEG

1.09

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 96.1% to 98.4% over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on capital is falling
ROCE has declined from 48.0% to 45.7% — often a sign of competition or overexpansion.

Red Flags

No automated checks triggered

None of the automated financial checks below were triggered on the years of data available. That is not the same as a clean bill of health — see what could not be checked.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 96.1% to 98.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 52% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 68% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 12% a year✓ 15.4% CAGR
Latest reported year was 10.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 96%✓ 98.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Return on equity stays above 34%✓ 36.1%
For a lender this is the cleanest single read on whether the book is being grown profitably.
4Valuation vs its own median of 39.3x✓ 18.9x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

11 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹9,564 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

18.9x

Fair

Fairly valued against the generic band

P/B Ratio

7.05x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹5.7

Profitable

Profitable on a per-share basis

ROE

36.1%

Strong

Strong capital efficiency

ROCE

45.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.82x

Moderate

Moderate leverage

Revenue Growth (YoY)

10.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

11.8%

Healthy

Profits growing at a healthy clip

Dividend Yield

3.72%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹418 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

17.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

83.7%

Good

Healthy core-business profitability

Net Margin

66.2%

Good

Strong bottom-line conversion

Current Ratio

2.00

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.44

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

108.4 / 116.0

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

36.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹401 Cr	₹449 Cr	₹537 Cr	₹615 Cr	+15.4%
EBITDA	₹385 Cr	₹435 Cr	₹530 Cr	₹606 Cr	+16.3%
EBITDA Margin	96.1%	97.0%	98.8%	98.4%	—
PAT (Net Profit)	₹306 Cr	₹351 Cr	₹429 Cr	₹493 Cr	+17.2%
EPS	₹3.42	₹3.94	₹4.83	₹5.54	+17.4%
ROE	38.3%	36.1%	37.8%	36.1%	—
ROCE	48.0%	45.9%	47.7%	45.7%	—
Total Debt	₹14 Cr	₹10 Cr	₹6 Cr	₹11 Cr	-7.5%
Free Cash Flow	-₹32 Cr	₹283 Cr	₹419 Cr	₹418 Cr	—

🟢 Revenue has grown at 15.4% a year over 3 years.

🟢 EBITDA has grown at 16.3% a year over 3 years.

🟢 EBITDA Margin has risen from 96.1% to 98.4% over 3 years (+2.4 pts).

🟢 PAT (Net Profit) has grown at 17.2% a year over 3 years.

🟢 EPS has grown at 17.4% a year over 3 years.

🔴 ROE has fallen from 38.3% to 36.1% over 3 years (-2.2 pts).

🔴 ROCE has fallen from 48.0% to 45.7% over 3 years (-2.2 pts).

🟢 Total Debt has shrunk at 7.5% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹32 Cr to ₹418 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,436 Cr

Total Liabilities

₹1,071 Cr

Cash & Equivalents

₹37 Cr

Operating Cash Flow

₹433 Cr

Capex

-₹15 Cr

Shareholding (proxy)

Institutional Holding

33.9%

Insider Holding

13.4%

Corporate Actions

Next Earnings

29 Oct 2026

Dividend Rate

₹4

Ex-Dividend Date

15 May 2026

Analyst Consensus

Recommendations

5 Buy · 4 Hold · 3 Sell

Target Price (Mean)

₹137.33

+27.7% vs CMP

Target Range

₹100 – ₹285

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
HDFC LIFE INS CO LTD	58.4x	11.3%
SBI LIFE INSURANCE CO LTD	63.9x	13.7%

Recent News

6 general

Indian Energy Exchange Share Price Near Low | Sector View

Univest, 13 Oct

Indian Energy Exchange IPO: All You Need To Know

NDTV Profit, 17 Oct

IEX stock: Why one regulatory change erased its competitive moat

Value Research, 26 Apr

Indian Energy Exchange Associate IGX Receives SEBI Nod for Proposed IPO

Whalesbook, 13 Oct

IEX: Power Demand Was The Story, Grid Flexibility And Platform Depth Matter More

Simply Wall Street, 17 Oct

IEX falls over 4% as Supreme Court allows CERC to frame market coupling regulations

Moneycontrol.com, 03 Aug

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability · Risk

MiddlingValuation

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last.

All 4 tripwires holding · see Key things to watch ↑