The phenomenal surge in IREDA (Indian Renewable Energy Development Agency) shares, soaring over 200% in just two months, has raised the question of whether this uptrend is an enticing investment opportunity. Notably, both FIIs (Foreign Institutional Investors) and DIIs (Domestic Institutional Investors) have demonstrated keen interest in IREDA throughout 2023.
Daily Chart Analysis
The daily chart reflects a robust upward trend characterized by consistent higher highs and higher lows.
Commencing its ascent on November 29, 2023, with a share price of approximately Rs 50.45, IREDA’s stock closed at Rs 154.05 on January 23, 2024, delivering investors a remarkable return of nearly 200% in this brief period.
Q3 Results FY 2023-2024
In Q3 of the fiscal year 2023-2024, IREDA reported a notable 67% surge in net profit, reaching Rs 335.54 crore. This commendable growth can be attributed to the expansion of the loan book and a substantial reduction in net non-performing assets (NPAs), decreasing from 2.03% to 1.52% year-on-year. Furthermore, revenue from operations witnessed a substantial 44.21% increase, amounting to Rs 1,253.20 crore compared to Rs 868.98 crore in the corresponding quarter last year. IREDA’s loan book also demonstrated impressive growth, standing at Rs 50,579.67 crore, reflecting a 33.50% increase YoY. The company’s net-worth for the quarter experienced a significant uptick of 45.49%, reaching Rs 8,134.56 crore against Rs 5,591 crore YoY. Additionally, IREDA reported gross non-performing assets (NPAs) of 2.90% for the quarter, down from 4.24%, and net NPAs at 1.52%, reduced from 2.03% YoY.
IREDA’s Chairman & Managing Director, Shri Pradip Kumar Das, expressed, “IREDA is unwavering in its commitment to expedite the adoption of renewable energy solutions in the country. For investors and stakeholders, these results signal the promising trajectory of IREDA’s contributions to India’s energy transition and environmental sustainability. These encouraging financial outcomes underscore IREDA’s steadfast dedication to fostering the expansion of the renewable energy sector in India.”
About the Company
Incorporated in March 1987, the Indian Renewable Energy Development Agency (IREDA) is a Mini Ratna (Category – I) government enterprise dedicated to promoting, developing, and extending financial assistance for new and renewable energy (RE) projects, as well as energy efficiency and conservation (EEC) projects.
With its impressive performance, sound financials, and ambitious expansion strategies, investing in IREDA shares seems to be a compelling opportunity. The recent surge in stock prices, combined with strong fundamentals, creates a positive outlook. However, as is the case with any investment, conducting thorough research is crucial. It is advisable to seek guidance from a financial advisor to assess whether IREDA aligns with your financial goals and risk tolerance.
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