IREDA Shares Surges on Strong Q4 Results and Robust Growth Momentum

22 Apr 2024 , 01:13 PM

IREDA shares saw a notable 11% increase to ₹179 following the announcement of its March quarter results.

At the time of writing, IREDA shares are trading at ₹171.25, marking a 7.1% increase from the previous session’s close. Over the past year, the stock has exhibited impressive growth, surging by 186.08%, and has shown a 64% increase since the beginning of the year, highlighting its strong performance trajectory.

The company’s Assets Under Management (AUM) experienced robust growth, expanding by 26.8% year-on-year to reach ₹59,698 Crore.

Asset quality showed improvement as Gross Non-Performing Assets (NPA) decreased to 2.36% from 2.9% in December, indicating healthier financial management.

The Net Interest Margin (NIM) also showed improvement, climbing to 2.85% from 1.84% in the same quarter last year, reflecting enhanced operational efficiency.

IREDA reported a substantial 32% year-on-year increase in net profit, reaching ₹337 Crore, showcasing strong financial performance.

Notable exits were observed in March, with Kotak Mutual Fund, Nippon India Mutual Fund, and ICICI Prudential Mutual Fund divesting their positions.

Retail investors hold a significant portion of IREDA shares, constituting over 17% ownership, with notable participation from individual investors.

IREDA’s initial public offering (IPO) debuted at ₹32 and rapidly soared to a record high of ₹214 within 50 days, indicating high investor confidence. The company currently commands a market capitalization of approximately ₹47,000 Crore, reflecting its significant market presence.

Established in 1987, Indian Renewable Energy Development Agency Limited (IREDA) is a government-owned public sector enterprise. IREDA specializes in offering financial assistance and various services to projects focusing on renewable energy sources and energy efficiency. Recognized as a Mini Ratna (Category – I) organization, IREDA operates under the ownership of the Government of India. The Ministry of New and Renewable Energy (MNRE) administratively oversees IREDA’s operations and activities.

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