Recently-listed PSU multibagger Indian Renewable Energy Development Agency Ltd (IREDA) is set to announce its earnings for the June 2024 quarter on Friday, July 12, 2024. The company will announce its quarterly results for the first time after making its Dalal Street debut in November 2023.
Shares of IREDA settled at Rs 283.60 apiece on Thursday, surging nearly 15 per cent at the close. The total market capitalization of the company topped Rs 76,000 crore mark. During the session, the stock rallied more than 17 per cent to Rs 289.45, hitting its all-time high.
The stock of IREDA is currently up 790 per cent from its IPO issue price of Rs 32 apiece. The stock was listed at Rs 50 per share, with a premium of 56 per cent. The stock has rallied nearly 470 per cent from its listing price so far. The stock has gained nearly 170 per cent in 2024 so far.
The stock was riding high on Thursday after IREDA came out with the June quarter shareholding pattern where it disclosed that foreign portfolio investors have doubled their stake in the renewable energy PSU, who owned 2.7 per cent stake in the company as of June 30, 2024, compared to 1.36 per cent stake in March 2024 quarter.
IREDA recorded loan sanctions of Rs 9,136 crore in the June 2024 quarter, up 382.62 per cent year-on-year (YoY) over Rs 1,893 crore in the year ago period. Loan disbursements for the quarter came in at Rs 5,320 crore, up 67.61 per cent YoY, while the outstanding loan book stood at Rs 63,150 crore for, up 33.77 per cent YoY.
Brokerage firms, tracking the stock, expect the company to report a strong set of numbers on a yearly basis. However, they are expecting a mixed set of numbers on a quarter-on-quarter (QoQ) basis.
Domestic brokerage firm Phillip Capital expects the company to report a net interest income of 501.8 crore up 40.8 per cent YoY and 12 per cnet QoQ. Net interest margins (NIMs) may contract marginally on a sequential basis, coming in at 3.55 per cent but YoY growth is seen at 41 basis points (bps).
Phillip Capital expects IREDA to report a net profit of Rs 333 crore, flat on a QoQ comparison but up 31.3 per cent on a YoY basis. Ebitda is seen at Rs 469.7 crore, up 38.8 per cent YoY and 10.8 per cent QoQ. EPS is likely to come in at Rs 1.2. "Renewable disbursement in solar to pickup but margin to moderate sequentially and normalized tax rate to keep PAT growth flat QoQ," it said.
IREDA is engaged in promoting, developing, and extending financial assistance for projects related to new and renewable sources of energy, energy efficiency, and conservation. We remain positive on the long-term growth prospects of the company, said said Amit Goel, Co-Founder & Chief Global Strategist at Pace 360.
"In the upcoming budget, we could see a Production Linked Incentive (PLI) scheme related to the renewable energy sector, including devices such as windmills and solar panels. There will likely be an increased focus on renewable energy to achieve the ambitious goal of sourcing 50 per cent of India's electricity needs from renewable sources by 2030," he added.
IREDA is a systemically important non-banking financial company engaged in financing the renewable sector. IREDA has been in business for more than 36 years engaged in the field of promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy, energy efficiency & conservation, said ICICIDirect Research.
"IREDA has geographically diversified asset base with term loans outstanding across 23 states and 5 union territories Given government’s focus on renewable sector, we remain positive on long term growth prospects which will aid long term sustained growth in AUM, it added with a 'buy' rating and a target price of Rs 250 apeice," which already has been met.
IREDA has hit a new all-time high, indicating further upside in the following sessions. The trend is headed towards the Rs 300-mark. Until the support of Rs 240 is protected, the price action is anticipated to scale higher levels, said Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox.
"The counter is observing buying momentum in the overbought category of the Relative Strength Index (RSI), implying positive strength in uncharted territories," he said.
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