IREDA went public in November last year, offering shares for Rs 32 each. This multibagger PSU stock is currently trading 771% higher than its issue price.
Shares of the Indian Renewable Energy Development Agency (IREDA) gained over 6 percent to hit a fresh record high of Rs 303.70 on July 12 ahead of the company’s fiscal first-quarter earnings. Investors anticipate healthy growth numbers for Q1FY25, following the positive provisional business performance.
In the previous session, the stock surged over 17 percent to reach a fresh record high of Rs 289.33 on the National Stock Exchange (NSE) before closing 12 percent higher at Rs 278.95.
In its Q1FY25 business update shared late last month, IREDA reported loan sanctions of Rs 9,136 crore in the June quarter, marking a 382.62 percent year-on-year (YoY) increase. The PSU’s loan disbursements for the quarter totalled Rs 5,320 crore, up 67.61 percent YoY. The outstanding loan book stood at Rs 63,150 crore, up 33.77 percent from Rs 47,207 crore a year ago.
The stock has attracted interest from foreign investors. In the quarter ending June 30, foreign portfolio investors (FPIs) increased their ownership in the company to 2.7 percent, up from 1.36 percent in the previous quarter. However, despite this rise, no prominent shareholder holds more than 1 percent.
The number of small shareholders also increased during the April-June period, with the total count of shareholders holding less than Rs 2 lakh worth of shares rising to 22.15 lakh, compared to 21.23 lakh in the March quarter.
Conversely, domestic mutual funds reduced their stake in the company, opting to book profits as the stock reached new highs. As of June 30, mutual funds held a 0.24 percent stake in IREDA, down from 0.5 percent at the end of March 2024.
IREDA stock has garnered investor attention since earning ‘Navratna’ status. Furthermore, the government’s increased emphasis on the renewable energy industry, in which IREDA plays a significant role, has contributed to the stock’s outstanding growth.
“Given the government’s focus on the renewable sector, we remain positive on long-term growth prospects which will aid long-term sustained growth in AUM. Thus, we assign a Buy rating on the stock,” ICICIdirect stated in a recent note.
In Q4FY24, IREDA reported a net profit of Rs 337.37 crore, registering a YoY growth of 33 percent. The quarter marked the highest loan disbursement in the company’s history as its loan book grew to Rs 59,698 crore, up 26.81 percent YoY.
