260% Returns: Multibagger Energy PSU Stock IREDA Surges 6% On Strong Q3FY25 Business Update; BUY?

Indian Renewable Energy Development Agency (IREDA), a leading public sector company in renewable energy financing, witnessed a sharp rise in its stock price on Wednesday, January 1, following the release of its provisional business performance updates. The multibagger stock surged nearly 6% in early trade, reaching Rs 227.70 on the BSE, buoyed by impressive loan book growth and robust business metrics.

Business Performance

IREDA reported multiple milestones in its business operations up to December 31, 2024, pending audit, which were disclosed post-market hours on Tuesday.
Loan Sanctions: The company sanctioned loans worth Rs 31,087 crore until December 2024, showcasing a growth of 129% compared to Rs 13,558 crore sanctioned during the same period in 2023.
Loan Disbursements: Disbursements reached Rs 17,236 crore, reflecting a 41% increase from the Rs 12,220 crore disbursed by December 2023.
Outstanding Loan Book: The outstanding loan book soared to Rs 69,000 crore, marking a 36% year-on-year growth from Rs 50,580 crore as of December 2023.

Stock Market Impact

Following the announcement, IREDA's share price rallied by 5.83%, to Rs 227.70 on the NSE in early trading hours. As of 1:50 pm on the National Stock Exchange (NSE), the stock traded at Rs 225.20, reflecting gains of nearly 5%.

Despite broader market pressures, including persistent selling by foreign institutional investors, IREDA's stock has been a standout performer in 2024. It delivered multibagger returns of 105% over the year, making it a significant wealth creator for investors since its IPO debut in 2023.

About IREDA

Established in 1987, IREDA operates under the Ministry of New and Renewable Energy (MNRE) as a Navratna public sector enterprise. The company specializes in providing financial assistance for renewable energy and energy efficiency projects.

Its growth trajectory aligns with India's push towards sustainable energy solutions. The surge in loan sanctions and disbursements reflects increasing demand for renewable energy projects and IREDA's critical role in supporting this transition.

IREDA's consistent performance and strategic focus on renewable energy financing position it as a key player in India's green energy goals. Investors have reaped multibagger returns, with the stock climbing over 115% in the past year alone.