IREDA made its debut on the stock market in November last year, offering its shares at Rs 32 each during its IPO. The PSU stock has since surged, trading at a remarkable 771% above its issue price.
Shares of the Indian Renewable Energy Development Agency (IREDA) rose by more than 6%, reaching a new peak of Rs 303.70 on July 12, ahead of the company’s first-quarter fiscal results. Investors anticipate strong growth figures for Q1FY25, following promising provisional business performance.
During the previous session, the stock surged over 17% to hit a fresh high of Rs 289.33 on the National Stock Exchange (NSE), closing 12% higher at Rs 278.95.
In its Q1FY25 business update released last month, IREDA reported loan sanctions of Rs 9,136 crore for the June quarter, marking a 382.62% increase year-on-year (YoY). Loan disbursements for the quarter amounted to Rs 5,320 crore, up 67.61% YoY.
The outstanding loan book grew to Rs 63,150 crore, a 33.77% increase from Rs 47,207 crore a year ago.
Foreign investors have shown interest in the stock, with their ownership rising to 2.7% in the quarter ending June 30, up from 1.36% in the previous quarter. However, no major shareholder holds more than 1%.
Shareholder Dynamics
During the April-June period, the number of small shareholders increased, with the total count rising to 22.15 lakh from 21.23 lakh in the previous quarter, holding less than Rs 2 lakh worth of shares.
Conversely, domestic mutual funds decreased their stake in IREDA to book profits as the stock reached new highs. As of June 30, mutual funds hold a 0.24% stake in the company, down from half a percent at the end of March 2024.
IREDA’s stock has attracted investor attention since achieving ‘Navratna’ status. The government’s heightened focus on the renewable energy sector, where IREDA plays a pivotal role, has significantly contributed to the stock’s impressive ascent.
“Given the government’s emphasis on the renewable sector, we maintain a positive outlook on long-term growth prospects, which will support sustained growth in AUM. Therefore, we recommend a Buy rating on the stock,” noted ICICIdirect in a recent analysis.
Foreign Investors’ Stake in IREDA Rises to 2.7% in Q2FY25
In Q4FY24, IREDA reported a net profit of Rs 337.37 crore, marking a 33% year-on-year growth. The quarter witnessed the highest loan disbursement in the company’s history, with its loan book expanding to Rs 59,698 crore, up 26.81% from the previous year.
The public sector entity also achieved record annual loan sanctions of Rs 37,353 crore and disbursements of Rs 25,089 crore in FY24, reflecting increases of 14.63% and 15.94%, respectively.
IREDA entered the market last November with its IPO offering shares at Rs 32 each. The stock debuted impressively, trading at a 56.25% premium above its IPO price.
In the current year, IREDA’s stock has surged by 166%, delivering substantial returns to investors, more than doubling their investments. Presently, the PSU stock trades at a significant 771% premium over its IPO issue price.
Avenue Supermarts Q1 Results 2024: Profit Rises 17.5% to ₹774 Crore
Avenue Supermarts, the operator of the popular DMart retail chain, announced on Saturday that its consolidated profit for the quarter ending June 2024 has increased by 17.5% to ₹774 crore, up from ₹659 crore in the same quarter of the previous fiscal year. The company’s revenue rose by 18.6% year-on-year (YoY) to ₹14,069 crore.
IREDA Q1 Results 2024 Live: Q1FY25 Results Declared in Record 12 Days
As the leading pure-play green financing NBFC in the country, IREDA announced that it has set a new industry benchmark by releasing its audited financial results within just 12 days. The revenue from operations rose to ₹1,501.71 crore in the quarter under review, compared to ₹1,143.50 crore in the same period last year.
IREDA Q1 Results 2024 Live: Loan Sanctions Surge in June Quarter
Loan sanctions soared to ₹9,210.22 crore in the first quarter of the fiscal year, up from ₹1,892.45 crore a year ago. Loan disbursements also rose to ₹5,325.88 crore for the quarter, compared to ₹3,173.27 crore in the same period last year. The loan book expanded to ₹63,206.78 crore, up from ₹47,206.66 crore in the year-ago period.
IREDA Q1 Results 2024 Live: NPA Drops to 0.95% in June Quarter
IREDA has effectively reduced its net non-performing assets to 0.95% in the first quarter of FY 2024-25, down from 1.61% in the same quarter of the previous fiscal year. The company’s net worth as of June 30, 2024, has risen to ₹9,110.19 crore, marking a 44.83% year-on-year increase from ₹6,290.40 crore.
Pradip Kumar Das, IREDA’s Chairman and Managing Director, stated, “IREDA’s unwavering dedication to advancing renewable energy solutions in India indicates a promising trajectory for investors and stakeholders.”
IREDA Q1 Results 2024 Live: Net Profit Jumps 30% to ₹383 Crore in June Quarter
IREDA reported a 30.2% increase in net profit, reaching ₹383 crore compared to ₹294.6 crore in the same period last year. The net-interest income (NII) grew by 37% to ₹507.9 crore, up from ₹369 crore.
IREDA Q1 Results 2024 Live: Stronger Loan Growth Anticipated
On Monday, IREDA announced significant growth in its sanctioned loans, reaching ₹9,136 crore during April-June FY25. Loan disbursements also surged by 67.61%, amounting to ₹5,320 crore in the reviewed period, compared to ₹3,174 crore a year ago. The total loan book outstanding as of June 30, 2024, stood at ₹63,150 crore, reflecting a 33.77% increase from ₹47,207 crore in April-June FY24.
IREDA Q1 Results 2024 Live: Brokerage Firms Expect Strong Performance
Brokerage firms following the stock anticipate robust yearly performance from the company, although they predict a mixed set of results on a quarter-on-quarter (QoQ) basis. Domestic brokerage firm Phillip Capital forecasts a net interest income of ₹501.8 crore, up 40.8% year-on-year (YoY) and 12% QoQ. They expect net interest margins (NIMs) to contract slightly on a sequential basis, coming in at 3.55%, but see a YoY growth of 41 basis points (bps).
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You might also be interested in – IREDA, a government-owned entity, intends to conduct an FPO in FY25 due to increased demand for renewable project loans.
