IEX Stock: There was a huge drop on Thursday, but why did IEX stock rise sharply on Friday, what next?:

News Topical, Digital Desk : On Friday, the stock opened at Rs 137.80 against the closing price of Rs 132.32. On July 25, the stock reached Rs 147.70. On Thursday, the company's stock fell by 30 percent. After a full day's trading on Thursday, the stock fell 27.9% to close at Rs 135.49 per share. Intraday, it slipped to Rs 131.50 per share, which is a decline of about 30% from Wednesday's closing price. In this way, IEX shareholders had to suffer huge losses in just one session.

What happened on Friday morning- Experts say that the impact of quarterly results is visible on the stock. Net profit in April-June quarter- increased from ₹96.4 crores to ₹120.7 crores – a tremendous growth of 25.2%,

Total revenue:- increased from ₹123.5 crores to ₹141.7 crores – an increase of 14.7%. EBITDA: increased from ₹99.6 crores to ₹115.6 crores – a growth of 16.1%. EBITDA margin:- improved from 80.6% to 81.6% – that is, the company is earning profit in a very efficient manner.

Why did the stock fall- profit, revenue and margin – the company has performed better than expected on all three fronts. The margin on this platform related to buying and selling of electricity is more than 80%, which is amazing. The market got the confidence that the business model of IEX is low cost and high earning.

What does it mean for investors? For those who have shares - this is a positive signal. For those who were eyeing IEX - these results can give them an entry opportunity, especially from a long-term perspective. Strong margins and demand growth make IEX a stable growth story.

IEX said: "It is not yet decided whether we will go to court or not" CERC (Central Electricity Regulatory Commission) has talked about implementing Market Coupling. That is, a common price discovery mechanism should be created in electricity exchanges - so that the same price is fixed on all platforms (like IEX and PXIL).

What does IEX have to say? IEX has not given any legal challenge on this till now. The company says that it would be premature to decide whether we will challenge this order of CERC in court or not. IEX is considering this issue, but no decision has been taken yet to go to court. This simply means that the company wants to understand the rules and respond, not to clash. This sends a positive signal that IEX is trying to find a solution while staying away from legal disputes.

What harm can Market Coupling cause to IEX? Currently, the biggest advantage of IEX is that it has the highest volume, so it decides the price. Market Coupling will give equal opportunity to all exchanges, which may reduce the price discovery power of IEX. This is the reason why investors and analysts are considering this decision as a regulatory risk for IEX.