IEX stock in oversold zone, down 51% from 52-week high; time to buy?

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Indian Energy Exchange (IEX) shares are trading at a 51% discount to their 52-week high. IEX scrip today closed at Rs 147.90, down 0.47 per cent from its previous closing price of Rs 148.60. The current market price at a discount of 51.3% to the 52-week high of Rs 304.05 on Dec 10, 2021. IEX stocks are trading above the 5 day, 20 day and 50 day moving averages but below the 100 day and 200 day moving averages. moving average. It has declined by 39.81% in one year and 41.53% this year.

At 3:16 pm, the IEX stock was trading at Rs 147.80 on BSE. A total of 3.27 lakh shares of the firm changed hands on BSE for a turnover of Rs 4.82 crore. The market cap of the firm stood at Rs 13,282 crore.

Recently, shares of IEX were in limelight after the firm’s board announced buyback of shares at Rs 200 per equity share with an issue size of Rs 98 crore. The share buyback price was announced at a board meeting held on 25 November. Last week, the IEX stock rose 9 percent ahead of a board meeting scheduled for the buyback plan.

Brokerage ICICI Securities said the share buyback was a positive development, adding the buyback was one of the ways to utilize surplus cash on the company’s books amid limited capex spending.

Read also: IEX shares jumped 3% ahead of share buyback decision; PL sees the stock at Rs 175 in the short term

IEX had over Rs 868 crore in cash at the end of H1 FY2023 and as per the buy-back regulation, the maximum buy-back quantum is around Rs 98 crore (i.e. up to 25 per cent of total shareholders’ net worth). This constitutes 14.95 per cent of the equity capital of the company with a buyback price of Rs 200 per share. The brokerage said the move is positive for shareholders.

However, the stock has remained flat since the announcement of the buyback. The stock was trading at Rs 147.80 today as against closing of Rs 147.05 on November 24.

In the second quarter of the current financial year, IEX reported a decline of nearly 7 per cent in its consolidated net profit at Rs 71.20 crore for the September quarter as against a net profit of Rs 77.38 crore for the quarter ended September 30, 2021. 113.77 crore in the quarter from Rs 122.30 crore in the same period a year ago.

Here’s a look at what analysts said about the stock’s prospects and whether it is a good buy in the current market condition.

Manoj DalmiyaFounder and Director, Proficient Equities said, “The stock is fundamentally strong and may accumulate at current levels and test Rs 166 in the near term. Further buying can be seen above Rs 180 levels.”

Read also: IEX stock rises 5% on share buyback plan

Ravi Singh“IEX, a technology-led energy market, erased 50 per cent of its 52-week gains for the September quarter due to a decline in the topline and bottom-line,” said vice president and head of research at Share India. Operating profit or EBITDA It declined 17 per cent due to weak volumes during the quarter while margins also contracted.The downside pressure in the stock may continue for some time and push the counter towards Rs 135 levels in the coming trading sessions.

Tirthankar DasAshika Stock Broking, Technical & Derivatives Analyst, Retail, said, “Consistent lower low formation in weekly and daily time frame indicates that the trend in the stock has been systematically negative. However, amid such negativity, the prices remained highly oversold.” Are in position. Weekly time frame. Hence, a relief rally or consolidation in prices can be seen before moving back to its downside momentum. The entire down move since Dec 21 onwards can be reversed from the upper panel around Rs 175-177 with immediate effect. Well directed with resistance. This pattern further coincides with the immediate swing high of August 22, followed by a 50% retracement of the entire up move since September 19. However, prices are now recovering from the 61.8% retracement. Hence, holding above the latest support base of Rs 137-140 could lead to a pullback rally towards Rs 177, however sustainability remains questionable unless it sustains decisively from 180 levels. Does not trade with that which can change polarity Ba. Ck positive.”

Abhijeet Said Tips2Trade, “After stupendous returns in 2020-21, which saw an excellent bull market especially for mid and small cap stocks, 2022 so far has been a year of improvement for some of these past outperformers like IEX. Technically, IEX needs to close above 153 on the daily chart for investors to target Rs 164-168 in the near term. Rs 141 will remain a strong support for now.

Indian Energy Exchange is engaged in providing an automated trading platform for physical delivery of electricity, renewables and certificates. It offers various trading markets, such as the electricity market, the green market, and certificates. The electricity market includes day-ahead market, term forward market, real-time market and cross border electricity trade. The green market includes the green term forward market and the green day-forward market.

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