Up 450% From IPO Price: This PSU Energy Stock Soars Following Strong Q4 Earnings; Profit Surges 45%

The shares of IREDA, India's premier green financing NBFC, witnessed an 11.40% surge during today's early morning trading session, reaching Rs 179 apiece. This surge came on the back of the company's healthy financial performance in Q4FY24 and for the full fiscal year of FY24.

In a post-market release on Friday, IREDA announced its FY24 financial results, boasting an all-time high annual profit after tax (PAT) of Rs 1252.23 crore, marking a growth of 44.83% over the preceding fiscal year of 2022-23.

Of significant note was the company's reduction of net non-performing assets (NPAs) to 0.99% in FY 2023-24 from 1.66% in FY 2022-23, showcasing a substantial year-on-year reduction of 40.52%.

The financial performance was further underscored by the expansion of IREDA's loan book from Rs 47,052.52 crore as of March 31, 2023, to Rs 59,698.11 crore as of March 31, 2024, marking a healthy growth of 26.81%.

Notably, the company achieved record-high annual loan sanctions of Rs 37,353.68 crore and disbursements of Rs 25,089.04 crore in FY 2023-24, reflecting an increase of 14.63% and 15.94%, respectively, over the previous fiscal year's figures.

IREDA's Chairman & Managing Director, Pradip Kumar Das, emphasized, "IREDA's steadfast commitment to accelerating the adoption of renewable energy solutions in India indicates a promising trajectory for investors and stakeholders."

Established in 1987, IREDA, the Indian Renewable Energy Development Agency, operates as a wholly owned Government of India enterprise under the Ministry of New and Renewable Energy (MNRE). It focuses on providing innovative financing solutions in renewable energy (RE) and energy efficiency, conservation, and environmental technologies.

Within the power financing NBFC sector, IREDA holds the largest share of credit towards the RE sector, second only to Power Finance Corporation. However, unlike its counterpart, IREDA is dedicated solely to the RE sector, distinguishing itself with a focused approach.

The company's shares made their debut on Indian exchanges on November 29 at Rs 60 each, surpassing their issue price of Rs 32. Within less than two weeks of listing, the stock witnessed a surge of 105.33%. However, following a peak of Rs 214.80, profit booking led to a 17.40% decline from that high. Nonetheless, the stock remains up by 456% from its IPO price, reflecting investor confidence in IREDA's prospects.

The shares of IREDA were seen trading with gains of nearly 7% at Rs 171.70 per share as of 12:55 pm on the National Stock Exchange (NSE).