The Indian Renewable Energy Development Agency (IREDA) came into existence in 1987 and operates as a public limited government company under the Ministry of New and Renewable Energy (MNRE). IREDA operates with the intention of making India shift towards sustainable energy. It also finances, promotes, and develops projects related to renewable energy fulfilling its duties as a Non-Banking Financial Institute.
But where does IREDA stand from a shareholder’s point of view is it a good investment, should you invest for the short term or long term, how does it fair in competition to other renewable energy companies, etc?
Don’t worry we have all the details you need for investing in August 2024.
IREDA’S Past Performance— IPO and Shares
IREDA came into the market with its Initial Public Offering (IPO) from November 21 to November 23, 2023. The price band was set between ₹30 to ₹32. The share came into the market with a bang and made its name among the investors. Not every share can raise ₹2150.21 crores in IPO now, can they?
This shows the strong fundamentals of share which made people invest in it.
In a short period from December 1, 2023, the day the trading of the share began. As of 22 August 2024, the share has grown exponentially and is currently trading at ₹262. The share has grown by 700% from its November 2023 listing.
The experts believe this share has a lot of potential to grow further and investors should hold the shares for now.
Financial Performance— Profits and Loan Sanctions
The company has seen a growth of about 21.18% in revenues and a 36.48% growth in its profits after tax (PAT) in FY 2023. Flexing its solid financial health and making investors believe in its fundamentally strong foundation.
Following its objective of making India sustainable the company has sanctioned loans of about 25,089 crores INR towards financing renewable energy projects across India. The company has financed projects across solar, hydro, wind, and biomass sectors leading to a diversified portfolio and ensuring development as a whole.
Competitors and Market Trends
Despite having competition with Industry giants like REC Limited and Power Finance Corporation. IREDA continues to be a leading company in the renewable energy sector. Their commitment to finance renewable energy projects has given them a unique but favorable position in the market.
The government is emphasizing green energy more than ever and plans to make India a sustainable country. They aim to generate 50% of India’s energy needs from green sources by 2030. This is favorable for companies like IREDA.
Conclusion: Should You Invest in IREDA
With the growing trend of green energy and the government favoring green energy companies, it is a sector that investors should dive into before it’s too late. IREDA’s strong market standing, financial health, growth prospects, and future importance should be taken in while investing. We recommend that IREDA is a share worth investing in while it’s still cheap.
IREDA has a strong future ahead with its upcoming fund-raising plans it might soar even higher in the market.
The share market is volatile and unpredictable. Investors should conduct their research before investing as well.
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This article is written by Krishna Jindal.
