Analyses of the DLF Ltd., and Indian Energy Exchange Limited shares

On the request of a few investors/traders, we studied DLF limited and IEX stock. Here are the key points of our analyses.

DLF

Looking at the financials of the stock, we find that the company’s profit has declined at a compounded annual rate of (-)19.64% in the last five financial years while the quarterly profit growth rate in last five quarters has been 6.45%. I also checked the QOQ and YOY profit growth, the net profit increased by 38.50% in the financial year closed on March 2023 as compared against previous FY while it has grown 8.60% in the quarter ended in December 2023 against previous quarter. The ROE of the DLF share is 4.61%, book value is 148, and PE ratio is about 46 which is quite higher than sector PE of 21.19. It means the company has made good profits in last couple of years and if it continues with this performance, the stock price may also deliver better results. However, five years’ Profit CAGR, PE ratio, and ROE are not suggesting any good performance in coming future.

The price study of the DLF stock shows that it has delivered negative returns in last fifteen financial years with an annual rate of (-)2.14% while it has grown at an annual rate of 20.68% in last five years albeit the stock of the DLF Ltd., is 6.91% down this financial year. The stock performance of this real estate company doesn’t seem to be any good for a long-term investment.

If we look at the technical chart of the stock, we see that the price is below all the exponential moving averages – 09DEMA, 21DEMA, 50DEMA, and 200DEMA – and bearish cross (09 EMA below 21 EMA) is also intact but the price has rebounded from the support at 341-344 zone. Therefore, DLF limited can be a good stock to buy above 359, with a stop loss below 341.55, for a final target of 413 followed by the first target of 379.

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IEX

This stock got listed in October 2017 and it has grown at an annual rate of 39.64% by the end of FY22, along with a 2:1 bonus in December 2021 and 10:1 split in October 2018. However, this stock has tanked 38.42% in the current financial year.

Looking at the financials of the stock, the profit of the company has grown at a compounded annual rate of 18.08% in the last five financial years while it has declined at the rate of 2.36% in the last five quarters. The YOY net profit of the IEX increased 42.25% as per the result posted in March 2022 and it has grown 1.43% QOQ as per the result posted in December 2022. The ROE of the stock is nearly 48.60, which is quite remarkable, along with the book value of 8.37, and PE ratio of about 42.70 which is quite higher than sector PE of 17.68. It means the company has made good profits year over years and if it continues with this performance, the stock price may continue to rise as it has been rising since listing. I, personally, hold a smaller quantity of the IEX stocks for a longer duration.

If we look at the technical chart of the IEX, we see that the price is below all the exponential moving averages – 09DEMA, 21DEMA, 50DEMA, and 200DEMA – and bearish cross (09 EMA below 21 EMA) is also intact, but the price seems to forming a base at current levels (130-135). Therefore, IEX can be bought here, only for the long-term investment purposes because I don’t see any strength on the chart of the stock. Also remember that you should put only as much money as much is not going to hurt you if got stuck for long time. I always keep all my positions with a defined stop loss to avoid such situations and my stop loss is below 129.

Disclaimer: I have just shared what I studied. I am not sure if I’ll trade next week or not. Also, the Data, used for analysis, has been taken from different sources on internet and I am not a SEBI authorized analyst, therefore verify the data and seek experts’ opinion before taking any trade.