📷 Image Credits: Moneycontrol
Shares of the Indian Renewable Energy Development Agency (IREDA) have witnessed a significant surge, hitting a fresh record high of Rs 303.70 on July 12, ahead of the company’s fiscal first quarter earnings. This marks an impressive gain of over 6 percent, with investors anticipating robust growth numbers during Q1FY25.
In a business update for Q1FY25 shared late last month, IREDA reported a substantial increase in loan sanctions, amounting to Rs 9,136 crore, representing a significant rise of 382.62 percent on a year-on-year basis. Moreover, the firm’s loan disbursements for the quarter stood at Rs 5,320 crore, marking a notable 67.61 percent YoY growth.
The outstanding loan book of IREDA recorded a commendable increase to Rs 63,150 crore, reflecting a rise of 33.77 percent compared to the previous year’s figures. The company has also garnered interest from foreign investors, with foreign portfolio investors (FPIs) increasing their ownership to 2.7 percent in the quarter ending June 30.
On the other hand, domestic mutual funds have opted to reduce their stake in the company, with mutual funds holding a reduced 0.24 percent stake as of June 30, down from half a percent at the end of March 2024. Despite this, the stock has managed to capture investors’ attention, particularly since earning ‘Navratna’ status and due to the government’s heightened focus on the renewable energy sector.
The IREDA stock has experienced a remarkable price appreciation, trading significantly above its IPO issue price. The stock debuted in November last year at Rs 32 per share and has since skyrocketed, currently trading 771 percent above the issue price. With a focus on long-term growth prospects and sustained AUM growth, analysts remain positive on the stock, attributing a Buy rating to it.
In the previous fiscal year, IREDA delivered impressive financial performance, reporting a net profit of Rs 337.37 crore in Q4FY24, reflecting a YoY growth of 33 percent. The company set new records for loan disbursements, with loan sanctions and disbursements reaching Rs 37,353 crore and Rs 25,089 crore respectively in FY24.
Overall, IREDA’s stock has garnered significant attention from investors, given its strong performance and the overall positive sentiment surrounding the renewable energy sector. As the company gears up to announce its Q1 results, market participants are eagerly awaiting further insights into its financial performance and growth trajectory.
