Risk factor
Very high price volatility
Profitability factor
Favourable analyst view
About
PT. Indika Energy Tbk operates as a comprehensive energy company based in Indonesia, encompassing divisions for Energy Resources, Energy Services, Energy Infrastructure, and various Other Portfolio Holdings. In its Energy Resources segment, the company is a significant coal producer, conducting surface mining activities across a 50,921-hectare concession in Paser Regency, East Kalimantan. The Energy Services division provides an array of offerings for the coal, oil, and gas sectors, such as mining, engineering, procurement, construction (EPC), and offshore supply base support. Under Energy Infrastructure, Indika Energy is involved in the operation and maintenance of logistics, in addition to owning and managing a 660-megawatt coal-fired power plant situated in Cirebon, West Java. The company further extends its reach into logistics and support, delivering complete supply chain business process solutions, warehousing, inventory management, transportation, and port operations. This also includes integrated ship docking services, covering operations, management, logistics, maintenance, and portside support. Beyond these core energy and logistics endeavors, Indika Energy maintains a diverse investment portfolio. This spans general trading, marketing, financing, coal and mineral trading, contracting, development, construction, real estate, agriculture, printing, and workshop services. Demonstrating a forward-looking approach, the company is also involved in renewable energy, electric vehicle (EV) mobility solutions, and nature-based solutions, as well as providing consultancy services for the construction, industrial, and infrastructure sectors. Its wide-ranging additional services include transportation management, business and management consulting, gold mining, information and communication technology, manpower provision, travel agency operations, insurance, vehicle repair and maintenance, rental and leasing, waste management, and digital technology services, alongside various professional, scientific, and technical expertise. Established in 2000, PT. Indika Energy Tbk has its headquarters in Jakarta, Indonesia.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. Specifically, the stock is 'expensive' on P/E, neutral on EV/EBITD.
Target Price
The average target price of INDY.JK is 3963 and suggests 55.4% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to i