IEX stock upgraded to 'Hold' by MarketsMOJO, showing strong financials and technical trend

Indian Energy Exchange (IEX) has recently caught the attention of investors as its stock call has been upgraded to 'Hold' by MarketsMOJO on January 23, 2024. This midcap company operates in the power industry and has shown high management efficiency with a ROE of 40.25%. Additionally, it has a low Debt to Equity ratio, indicating a stable financial position.
Technically, the stock is in a mildly bullish range and has shown improvement since January 20, 2024, generating a return of -4.08%. The MACD and KST technical factors are also bullish, further supporting the stock's positive trend.

One of the key factors that make IEX a hold is its high institutional holdings at 39.71%. These investors have better resources and capabilities to analyze the fundamentals of companies, making their stake in IEX a positive sign for retail investors. In fact, their stake has increased by 2.97% over the previous quarter.

However, the company has shown poor long-term growth with an annual operating profit growth rate of only 19.35% over the last 5 years. In addition, its results for September 2023 were flat, with the lowest operating cash flow and ROCE in the last half-year.

With a ROE of 37.6, the stock is currently trading at a very expensive valuation with a price to book value of 13.9. However, it is still at a discount compared to its average historical valuations. Over the past year, while the stock has generated a return of -1.55%, its profits have risen by 7.7%, resulting in a PEG ratio of 4.4.

In the last 1 year, IEX has underperformed the market (BSE 500) with negative returns of -1.55%, while the market has generated returns of 23.79%. This may be a cause for concern for investors, but it is important to note that the company's profits have still shown growth.

In conclusion, while IEX may not have a strong long-term growth potential, its current financial position and technical trend make it a hold for now. Investors should keep an eye on the company's performance and market trends before making any investment decisions.