Table of Contents
Is IEX a monopoly company?
Due to this, IEX has a monopoly in the market, while everything looks perfect for this company with great business, great monopoly, and so on. There is one major factor that drives the future of this company.
What is the business model of IEX?
IEX operates a day-ahead market based on closed auctions with double-sided bidding and uniform pricing; it has over 3,800 registered clients, over 300 private generators and more than 3,300 industrial electricity consumers.
How does IEX make profit?
IEX is the first and the largest energy exchange in India. It allows for trading of electricity on its platform just like NSE and BSE allow trading of stocks. IEX’s primary revenue sources include transaction fees (about 84\% of revenues) and annual subscription fees (5\% of revenues).
Will IEX grow?
Indian Energy Exchange managed to grow EPS by 17\% per year, over three years. That growth rate is fairly good, assuming the company can keep it up. One way to double-check a company’s growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing.
What is a good example of a monopoly?
To date, the most famous United States monopolies, known largely for their historical significance, are Andrew Carnegie’s Steel Company (now U.S. Steel), John D. Rockefeller’s Standard Oil Company, and the American Tobacco Company.
What is monopoly answer?
Definition: A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute. He enjoys the power of setting the price for his goods. …
Why is IEX an impenetrable monopoly?
The reason why IEX today is an impenetrable monopoly is because this “order matching” and “price discovery” happens at the exchange level. This means that both the buyer and the seller have to be on the same platform (either on IEX or PXIL) for their orders to be matched and get executed.
Is IEX a good stock to buy?
Though earnings quality and predictability are very high for IEX, the earnings growth is mediocre. Mohnish Pabrai (author of the Dhando Investor), Guy Spier (of “Education of a Value Investor” fame) have bought this stock at higher valuations.
What is the iriiex India?
IEX India – it is the stock exchange of the electricity sector. It is a monopoly business which is very profitable with operating margins of 80\%+. Why do we need to have a different exchange just for the electricity sector?
What is Indian Energy Exchange (IEX)?
Indian Energy Exchange (IEX) also facilitates the physical delivery of electricity in coordination with NLDC. Thus, other established exchanges in India like BSE, NSE, MCX, NCDEX etc will find it very cumbersome to get this mechanism implemented.