With Monday’s surge, the stock has also turned positive for the month of July, having gained nearly 18% in June.
IEX reported its June quarter results last week, where it saw a 18.8% growth in its revenue, while net profit went up by 27.2%. The stock also reported a 200 basis points expansion in its EBITDA margin to 80.4%. Volumes for the quarter had increased by 21.1% from last year, the company had highlighted in a business update earlier.
The management of IEX in its earnings call has highlighted these growth levers over the medium term: Increase in electricity demand and supply, large capacity addition in Renewable Energy and storage with declining costs, favourable regulatory and policy framework for market development and diversification of the company into coal exchange, carbon exchange and other segments.
Brokerage firm Axis Securities maintained its “ADD” rating on the stock but raised its volume estimates for financial year 2025 – 2026 by 1% and 3% and Earnings Per Share (EPS) by 5% and 7% respectively after factoring in higher other income. It also raised its price target on the stock to ₹195 from ₹170 earlier.
Out of the 11 analysts that have coverage on IEX, eight of them maintained their “buy” recommendation on the stock, while the other three have a “sell” rating.
“IEX was plagued with significant underperformance which made it an uninteresting buying proposition. However, in the last few months it has formed a strong base and is on the verge of a consolidation breakout on the monthly charts. Momentum indicators have also aligned for a sustained upside in the coming months. Investors can aim for ₹240 levels in the next 12 months,” said Gaurav Bissa of InCred Equities.
Shares of IEX are trading 5.9% higher at ₹187.05. The stock has risen 11% so far in 2024.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
