Indian Renewable Energy Development Agency (IREDA), a leading large-cap NBFC (Non-Banking Financial Company), has reported impressive financial performance for 2024. Over the past three quarters, IREDA achieved record net sales of ₹1,629.55 crore and a Profit After Tax (PAT) of ₹387.75 crore. MarketsMojo has given IREDA a ‘Hold’ rating, reflecting its strong financial position and long-term stability.
IREDA Financial Performance
- Net Sales: ₹1,629.55 crore (record high for three quarters)
- Profit After Tax (PAT): ₹387.75 crore (indicating steady growth)
- PBDIT: ₹1,498.69 crore (showing strong operating performance)
- CAGR: 36.63% (ranking IREDA among India’s most stable and profitable NBFCs)
- Share Market Performance: 112.61% return in one year, outperforming BSE 500’s 14.51% return
MarketsMojo’s ‘Hold’ Rating
The Indian Renewable Energy Development Agency (IREDA) has received a ‘Hold’ rating from MarketsMojo, reflecting its strong fundamentals, including a 36.63% CAGR in operating profits.
Reasons Behind the Rating
- Strong Operating Performance: Continuous increase in operating profit.
- High Profitability: Record net sales and PAT.
- Long-term Stability: Leading role in renewable energy financing.
- Caution for Investors: High Price-to-Book Value (6.3) and ROE (13.4).
IREDA Shareholding Patterns
- Institutional Stake: Slight decrease of 0.74% in the last quarter.
- Large-cap Attraction: Despite high returns, institutional investors remain cautious due to high valuation.
| Investors | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 |
| Promoter | 75% | 75% | 75% | 75% |
| FII | 2.0% | 2.7% | 1.4% | 1.9% |
| DII | 0.4% | 0.4% | 1.0% | 4.4% |
| Public | 22.6% | 21.9% | 22.7% | 18.8% |
| Others | 0.0% | 0.0% | 0% | 0% |
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IREDA’s Role in Renewable Energy
IREDA is a key player in India’s renewable energy financing, supporting solar, wind, and bioenergy projects.
The Indian Renewable Energy Development Agency (IREDA) is a government owned company that plays a key role in promoting and financing renewable energy projects in India. It was established in 1987 as a Non-Banking Financial Institution under the administrative control of the Ministry of New and Renewable Energy (MNRE).
IREDA’s financing schemes for solar energy:
- Long term project financing
- Short term loan assistance
- Bridge loan assistance
- Guarantee assistance scheme
- Direct discounting of MNRE capital subsidy
- Credit enhancement guarantee scheme
IREDA funds projects in solar, hydro, ethanol, and renewable energy manufacturing. Example, IREDA has sanctioned over ₹3,000 crore for green energy projects in Odisha.
IREDA’s Green Energy Initiatives
IREDA financed several sustainable projects in 2024, contributing to the growth of renewable energy.
IREDA has indeed made significant contributions to India’s renewable energy sector. By sanctioning over ₹2.08 lakh crore and provided ₹1.36 lakh crore towards renewable energy projects, IREDA has played a pivotal role in fostering market formation for emerging technologies. These include ethanol production, electric vehicle (EV) fleet financing, pumped storage hydropower, and green ammonia initiatives.
Such efforts have established IREDA as a key player in driving India’s transition to sustainable energy solutions.
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Conclusion
IREDA’s impressive financial performance and strong position in the renewable energy sector make it an attractive investment option, despite high stock valuation.
IREDA’s strong PBDIT and CAGR indicate a promising future. However, investors should be cautious due to high stock valuation.
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