The shares of Indian Renewable Energy Development Agency (IREDA) rose by 3%, reaching an intraday high of ₹211.75 on Wednesday.
IREDA’s IPO launched in November last year at ₹32 per share and was listed with a premium at ₹60, around 90% higher.
The stock hit a 52-week high of ₹310 on July 15, 2024, giving its investors an impressive return of up to 900% in just eight months.
ICICI Direct Recommends ‘Buy’ Rating
Top brokerage firm ICICI Direct has issued a ‘buy’ recommendation for IREDA, setting a target price of ₹280 per share.
This guidance reflects a positive outlook for the company’s future growth potential in the renewable energy sector.
IREDA’s Financial Performance and Business Focus
IREDA, a Government of India enterprise, provides financial assistance for renewable energy and energy efficiency projects and is registered with the Reserve Bank of India (RBI) as an infrastructure finance company.
Operating under the Ministry of New and Renewable Energy, IREDA posted a net profit increase of 36%, reaching ₹387.75 crore for the September quarter of the current fiscal year.
This rise in profit is largely due to an increase in income, with operating income rising by 38.52% to ₹1,630.38 crore, compared to ₹1,176.96 crore in the same quarter last year.
Loan approvals also surged, increasing from ₹2,852.05 crore in the July-September quarter of 2023-24 to ₹8,723.78 crore in the corresponding quarter of 2024-25, showing the company’s expanding role in financing renewable projects.