Indian Renewable Energy Development Agency (IREDA), a key player in financing renewable energy projects, is set to release its Q2FY25 results on Thursday, 10 October. Investors are anticipating strong quarterly growth, which is promising for those focused on share market investment, as it signals potential returns.
Earlier this month, IREDA shared a positive business update for the September quarter, marking significant increases in loan sanctions and disbursements. Loan sanctions soared by 303% in the first half of FY25, reaching ₹17,860 crore compared to ₹4,437 crore in the same period last year. Disbursements also grew by 56%, totalling ₹9,787 crore. These developments make share market investment in IREDA particularly appealing, as its revenue and net profit are expected to reflect these gains.
In Q1FY25, IREDA reported a 30% rise in net profit, reaching ₹383.69 crore, driven by a 32% increase in total revenue to ₹1,501 crore. This strong performance demonstrates why share market investment in IREDA could be a wise choice. The company also reduced its net non-performing assets (NNPA) to 0.95%, strengthening its financial health and positioning it well for further growth.
Recent shareholding data showed a reduction in foreign institutional investors’ (FIIs) stake, down from 2.7% in June 2024 to 2.02% by the end of September 2024. Despite this, IREDA’s stock remained steady. On 9 October, shares opened at ₹226.4 on the NSE, hitting an intraday high of ₹234 and closing up 3.61% at ₹232.5. This steady stock performance makes share market investment in IREDA attractive for long-term investors.
Year-to-date, IREDA shares have surged by 120%, reinforcing the company’s growth potential for those considering share market investment. Although the stock has seen moderate growth over the last month, rising by 3%, its yearly gains suggest IREDA’s strategy is proving successful, particularly within the renewable energy sector.
With Q2 results expected to reflect further revenue and profit growth, IREDA remains a compelling option for share market investment. Market analysts are optimistic about the company’s future, driven by strong loan disbursement performance and continued expansion in the renewable energy sector. The upcoming financial results will provide crucial insights into IREDA’s potential to maintain its upward trajectory and deliver value to its shareholders.
In summary, IREDA’s robust financials, growth strategy, and resilient stock price strengthen its position in the share market investment space.
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