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IEX Shares Upgraded by Bernstein Amid Soft Volume Growth Warning
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CNBC TV18•07-10-2026, 09:29
IEX Shares Upgraded by Bernstein Amid Soft Volume Growth Warning
- •Shares of Indian Energy Exchange Ltd. traded higher after Bernstein upgraded the stock to Market Perform from Underperform with a price target of 110 rupees.
- •Bernstein noted that market coupling is inevitable but expects implementation timelines to be delayed to around the end of fiscal year 2028 due to operational and legal challenges.
- •The brokerage highlighted that near-term volume growth will remain subdued with supply constraints such as weaker hydro generation and coal shortages limiting growth.
- •Potential revision of transaction charges by the Central Electricity Regulatory Commission remains a longer-term risk for the company.
- •Bernstein believes current valuations fairly reflect expectations of lower transaction charges and eventual market share loss following market coupling.
Key Questions Answered
Global brokerage firm Bernstein upgraded IEX to a 'Market Perform' rating from 'Underperform', setting a price target of ₹110 per share.
Bernstein expects market-coupling implementation to be delayed by around a year to the end of FY28 due to legal and operational challenges, including cross-exchange clearing, software alignment, and Grid India's limited price discovery experience.
Bernstein expects IEX's near-term volume growth to remain subdued due to supply-side constraints such as strong power demand, weaker hydro generation, and coal shortages.
