Latest News

• The Indian Renewable Energy Development Agency (IREDA), which debuted on the stock market before the end of December 2023
• revealed on Monday that it has signed a Memorandum of Understanding with Punjab National Bank, a public lender.
• A Memorandum of Understanding for Co-Financing Green Energy Projects has been signed by the company and the lender. The MoU includes a number of clauses designed to improve funding for renewable energy initiatives.
• Company has generated 197% returns within a span of 3 months since IPO listing.

About Company

IREDA is a government-owned Mini Ratna (Category-I) company that promotes, develops, and provides funding for energy efficiency and conservation (EEC) and new and renewable energy (RE) projects.

Services Offered

Co. offers a wide range of financial products and associated services for Renewable Energy (RE) projects and adjacent value chain operations, like equipment production and transmission, from project conception to post-commissioning.

Loan Disbursed

Loans sanctioned have increased from Rs 11,001 crore in FY2021 to Rs 32,587 crore in FY2023.

Loans disbursed increased from Rs 8,828 crore in FY2021 to Rs 21,639 crore in FY2023.

Fundamental Analysis

Market Cap	47,708 Cr
Current Price	₹ 178
High/Low	₹ 215 / 50.0
Stock PE	55.2
Book Value	0
ROCE	8.17%
ROE	15.40%
Sales Growth 5 years	75.00%
Debt To Equity	6.77

Shareholding Pattern

Promoters holds majority of the shareholding followed by the public, DII & FII. Within a span of 3 years company will decrease it’s holding pattern & so that FII’s & DII’s will increase their shareholding in the company.

Financial Trend

 

Sales (5 Years Comparison)

• 2020: 2,368 crore
• 2024: 4,965 crore
• 5 Years Percentage Change: $109.72\%$

Net Profit (5 Years Comparison)

Profit Growth 482% which is really impressive for a PSU

• 2020: 215 crore
• 2024: 1,252 crore
• 5 Years Percentage Change: $=482.33\%$

IREDA Share Price

1 Year Stock Returns

• IREDA has given 1 year returns of 197.25 %
• If you would have invested 1 lakh in June 2023, it would have became 2.97 lakhs in June 2024

IREDA raise 2150 Crs through the IPO of which 1290 Crs of fresh issue will be utilised for:
A) Augmenting the capital base to meet future capital requirements and lending.
B) Listing Benefits

Company’s IPO debut in November 2023 with a opening price of 60 rupees & now share price is standing at 177 rupees. It means company has given 197% returns in the span of 3 months which is quite impressive for the public sector unit company. In such companies majority of shareholding lies with the Government of India & Indian government is trying to focus on the PSU stocks in the past 3 years.

IREDA has so much potential in the long run as company is able generate profits with such a staggering numbers. With current MoU with the Punjab National Bank it will eventually help IREDA to expand their business by providing loans to the customers.

Credit Rating

The share of secured assets was 93.41%. IREDA has been rated highly by credit rating agencies as AAA (Stable) by India Ratings, ICRA, and Acuite.

Should you Invest ?

1. IREDA is a PSU stock & with the current Modi Government strongly focusing on the PSU companies. Each & every PSU company has generated massive returns to the investors in couple of years. In 2024, if Modi Government comes again in power then all the PSU stocks will grow like nothing.
2. Indian Government’s focus on the renewable energy & the schemes associated with it have helped in this sector to boost in the long run.
3. I think this is such a stock which can give multi-fold returns in the long run if you hold this stock for the next 10 years & it will definitely be a multibagger in coming future.
4. If we look at the current price of the company, valuation is slightly at higher end & if we look at the other PSU stocks you will see the same pattern with the IRCTC, RVNL, BHEL, Bharat Dynamics, HAL, etc (these companies also have the higher valuation but still their share price is continuously increasing.
5. If you have the patience to hold IREDA which is having the strong Fundamentals & impressive balance sheet we can definitely keep invested in the long term.

Check Out this- SBI Cards down by 65%; Should you invest ?

Disclaimer

This article is a complete guide about (The Indian Renewable Energy Development Agency) IREDA .
These information and forecasts are based on our analysis, research, company fundamentals and history, experiences, and various technical analyses.
Also, We have talked in detail about the share’s future prospects and growth potential.
Hopefully, this information will help you in your further investment.
If you have any further queries, please comment below. We will be happy to answer all your questions.
If you like this information, share the article with as many people as possible.