As per Philip Capital brokerage firm , there might be chance of Indian Renewable Energy Development Agency Ltd (IREDA) stock price crash –60% downfall expected.
Indian Renewable Energy Development Agency Ltd (IREDA) stock price crash-points to be noted
As per Philip Capital brokerage firm, recent rally of IREDA is only because of passive flows , not because of any fundamentals.
“Higher exposure to the private sector and high proportion of the vulnerable portfolio do not provide confidence for low credit costs in the medium term,” the brokerage added.
About IREDA
Indian Renewable Energy Development Agency Ltd (IREDA) as a fully owned by Government of India enterprise. It is a Mini Ratna (Category-I) non-banking financial institution under the administrative control of MNRE (Ministry of New and Renewable Energy).
IREDA provides financial assistance and other services to projects related to renewable sources of energy and energy efficiency/conservation with the motto ‘’ENERGY FOR EVER’’.
Visions of IREDA
‘’Expanding and transitioning renewable energy towards affordability, scalability and establishing sustainability in the country’’.
Mission of IREDA
IREDA mission is ‘’Be a pioneering, participant friendly and competitive institution for financing and promoting self-sustaining investment in energy generation from Renewable Sources, Energy Efficiency and Environmental Technologies for sustainable development’’.
Achievement
Companies’ biggest achievement is that they have proven to everyone that they have the competency and capability to transition the sector from emerging to established.
When it comes to development of Renewable Energy (RE), Very soon, they will be upgraded from Miniratna to Navratna, it is under process at the Government of India. Very soon, they are going to open an office in Gift City to further reduce our hedging cost where they can borrow and lend in foreign currency.
Another major achievement is they have supported speedy development of RE in the country. Over the last 9 years, there has been rapid growth in RE development across the country.
In November 2023, IREDA went public with an initial public offering (IPO), Listing on NSE and BSE.
| IREDA current price | 296.43Rs |
| Market Cap | 79.22KCr |
| P/E ratio | 63.37 |
| Profit Percentage in past 1 year | 392.65% |
| 52 weeks High | Rs 310 |
| 52 weeks Low | Rs 32 |
Key factors of IREDA
- Vast experience in funding RE projects
Loan disbursements of more than Rs1,05,000Cr
- Higher amount of loan up to 90% of Project Cost
- Supported RE capacity installation of over 22GW
- They also include Ethanol, Waste to Energy, Access to energy, Canal top solar
- Their sectors are Solar Energy, Wind Energy, Hydro Energy, Bio Energy, Energy Efficiency and Conservation, New and Emerging Technologies, Waste to Energy.
IREDA has achieved an all-time high annual Profit After Tax (PAT) of Rs. 1252.23 crore, marking an impressive growth of 44.83% over the previous fiscal year 2022-23. The company has successfully reduced its Net Non-Performing Assets (NPAs) to 0.99% in FY 2023-24 from 1.66% in FY 2022-23, demonstrating a significant reduction of 40.52% year-on-year.
Loan Portfolio of IREDA as on 31/03/2024
They have provided loan facility to state utilities 21.6%, Biomass and Cogen 7.0%, Others (Mfg., WTE, EEC)10.4%, Short term Loans 1.5%, Small Hydro 12.2%, Wind Energy 19.9%, Solar Energy 27.3%.
Main Objective of IREDA
- Improvement in the efficiency of services provided to customers through continuous improvement of systems, processes and resources.
- To increase the share in renewable energy sector by way of innovative financing.
- To maintain its position as a leading organisation to provide efficient and effective financing in renewable energy.
- To strive to be competitive institution through customer satisfaction.
- To give financial support to specific projects and schemes for generating electricity and or energy through new and renewable sources and conserving energy through energy efficiency.
Disclaimer
This stock is not for Buy or Sell recommendation do your own research before investing in any stocks or you can contact your financial advisor for more information.
Even though brokerage firm has opinion on Indian Renewable Energy Development Agency Ltd (IREDA) stock price crash, fundamentals and their future growth can be studied for longer run.
FAQ
- What is the future prediction of IREDA stock?
Current price of IREDA is Rs 289.65. Their Net Profit is increasing year to year this is a good sign and FIIS also increased their investment when we comparing it with the past year’s investment. Recently the price has reached all time high level. It suggests further upward movement in the stock.
- What did IREDA declare 2024 as?
Shri Pradeep Kumar Das (chairman and managing director of (IREDA) announced that this year will be ‘year of Human Resource Development and Discipline’ to mark IREDA’s future roadmap into new strategic sectors and geographies
- Why did IREDA prices increases?
When we compare the last years Net Profit, Revenue and FIIS is increased in the present year so this is the good sign. The stock has gained nearly 25.12 per cent in the last five trading session on the National Stock Exchange (NSE).