Shares of the Indian Renewable Energy Development Agency (IREDA) soared over 6 percent to a new high of ₹303.70 on July 12, as investors anticipate strong Q1 FY25 earnings. This follows a 17 percent surge in the previous session, closing 12 percent higher at ₹278.95 on the NSE.
IREDA recently reported a significant increase in its Q1 business performance. Loan sanctions for the June quarter reached ₹9,136 crore, up 382.62 percent year-on-year, while loan disbursements stood at ₹5,320 crore, marking a 67.61 percent increase. The outstanding loan book rose to ₹63,150 crore, up 33.77 percent from the previous year.
The stock has attracted foreign investor interest, with FPIs increasing their stake to 2.7 percent in the June quarter, up from 1.36 percent in the previous quarter. However, no prominent shareholder holds more than 1 percent of the company. Meanwhile, the number of small shareholders also increased, with those holding less than ₹2 lakh worth of shares rising to 22.15 lakh from 21.23 lakh in the March quarter.
As of 10:36 AM the shares were trading 4.34% higher at ₹296.01 on NSE.
Domestic mutual funds, on the other hand, have reduced their stake, booking profits as the stock hit new highs. As of June 30, mutual funds hold a 0.24 percent stake in IREDA, down from 0.5 percent at the end of March 2024.
IREDA’s stock has been gaining attention since earning ‘Navratna’ status and benefiting from the government’s increased focus on the renewable energy sector. In Q4 FY24, IREDA reported a net profit of ₹337.37 crore, up 33 percent year-on-year. The quarter also saw the highest loan disbursement in the company’s history, with the loan book growing to ₹59,698 crore, up 26.81 percent year-on-year.
In FY24, IREDA achieved record annual loan sanctions of ₹37,353 crore and disbursements of ₹25,089 crore, increasing by 14.63 percent and 15.94 percent, respectively.
