Shares of the Indian Renewable Energy Development Agency (IREDA) rose nearly six percent on January 1, 2025, following the company’s interim business review. Public sector business reported positive thirty-six percent growth in its loan bookwhich was Rs 69,000 crore as of December 31, 2024. This is a significant increase from Rs 50,580 crore in December 2023.
The company also highlighted strong momentum in loan sanctioning, which increased by one hundred and twenty-nine percent year-on-year to Rs 31,087 crore in 2024, compared to Rs 13,558 crore in 2023. percent to Rs 17,236 crore, from Rs 12,220 crore last year.
Market reaction and stock performance
Strong financial performance pushed IRED’s share price to Rs 227.70 in early trade on BSE. This marks the continuation of the stock’s positive performance, as it has delivered a 105 percent return by 2024. While broader market pressures and foreign investor outflows have impacted several stocks, IREDA remains strong, rewarding long-term investors.
Despite significant corrections from above, IREDA’s track record as a wealth creator since its IPO in 2023 has positioned it as a multibagger in the renewable energy sector.
Pioneering renewable energy financing
Established in 1987, IREDA operates under the Ministry of New and Renewable Energy (MNRE) and is a Navratna public sector company. It focuses on providing financial assistance and services for renewable and energy efficiency projects, reflecting India’s green energy goals.
The company’s strong loan book growth coincides with the government’s focus on transitioning to sustainable energy solutions. Analysts believe that IREDA is well positioned to take advantage of the growing renewable energy market, driven by increasing demand for clean energy financing.
The outlook remains optimistic
As renewable energy continues to gain prominence globally, IREDA’s strong fundamentals and strategic focus ensure that it remains a key player in driving India’s energy transition. Investors and market watchers are optimistic about the company’s ability to sustain growth through 2025 and beyond.
