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- IREDA Stock Surges 6% To Fresh Record High Ahead Of Q1 Results, Up 394% In A Year
Mumbai5 hours ago
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Shares of Indian Renewable Energy Development Agency Ltd (IREDA) hit its new all-time high today, July 12 (Friday). In early trade, the company’s shares rose by about 6% to Rs 303.70. However, now the company’s shares are trading at Rs 298.79 with a rise of 5.32%.
The company will also release the results for the first quarter (April-June) of the financial year 2024-25 today. Investors are hopeful that the company will present better growth figures. The provisional business performance of the company has also been good.
The company’s shares gave a return of 62.48% in 1 month.
In the last session, the company’s shares had made a high of Rs 289.33 with a rise of 17%. After this, the company’s shares closed at Rs 278.95 with a rise of 12%. The company’s shares have given investors a return of 25.49% in the last 5 days and 62.48% in 1 month.
Company’s shares rose 167.86% in 6 months
The company’s shares have risen 167.86% in the last 6 months and 183.47% since the beginning of this year i.e. January 1. The company’s shares have given a return of 394.42% to its investors since listing. The market cap of the company is Rs 80 thousand crores.
Loan sanctions worth Rs 9,136 crore made in June quarter
In its Q1FY25 business update shared late last month, IREDA had said it made loan sanctions worth Rs 9,136 crore in the June quarter, which is 382.62% higher than the same quarter last year (YoY).
Company’s loan disbursement was Rs 5,320 crore.
The company’s loan disbursement for this quarter stood at Rs 5,320 crore, which is 67.61% more than the same quarter last year. The outstanding loan book stood at Rs 63,150 crore, which is 33.77% higher than Rs 47,207 crore in the same quarter a year ago.
FPIs increased their stake in the company to 2.7%
Interest from foreign investors has been seen in the shares. Foreign portfolio investors (FPIs) increased their stake in the company to 2.7% in the quarter ended June 30, from 1.36% in the previous quarter. However, despite this growth, no major shareholder is holding more than 1% stake.
The number of small shareholders of the company increased to 22.15 lakh.
The company also saw a rise in the number of small shareholders during the April-June period, as the total number of shareholders holding shares worth less than Rs 2 lakh increased to 22.15 lakh, compared to 21.23 lakh in the March quarter.
Domestic mutual funds reduced their stake in the company
On the other hand, domestic mutual funds reduced their stake in the company as they booked profits after the stock reached new high. Mutual funds held 0.24% stake in IREDA as of June 30, down from half a percent at the end of March 2024.
IREDA’s investors increased after attaining ‘Navratna’ status
IREDA shares have attracted the attention of investors since attaining ‘Navratna’ status. Apart from this, this growth in the company’s shares has been seen due to the increasing focus of the government on the renewable energy sector. IREDA is a major player in the renewable energy sector.
“We remain positive on long-term growth prospects given the government’s focus on the renewable energy sector, which will support long-term growth in assets under management (AUM),” ICICI Direct said in a recent note. Therefore, we give a buy rating on the stock.
IREDA had reported a net profit of Rs 337.37 crore in Q4FY24.
In the fourth quarter of the last financial year i.e. Q4FY24, IREDA had registered a net profit of Rs 337.37 crore, registering a year-on-year (YoY) growth of 33%. This quarter was the highest loan disbursement in the company’s history as its loan book grew to Rs 59,698 crore, which was 26.81% more than last year.
The company had made an all-time high annual loan sanction of Rs 37,353 crore and loan disbursement of Rs 25,089 crore in FY 2024. Compared to last year, annual loan sanction was 14.63% and loan disbursement was 15.94% higher.
IREDA went public in November, shares were sold in IPO at a price of Rs 32.
IREDA went public in November last year, selling shares in its IPO at a price of Rs 32 per share. The stock had an excellent debut, listing at a premium of 56.25% over the IPO issue price.
