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IREDA: CMP: 147 Long tIREDA: CMP: 177 Long term Gr: 23% | Fy25 Growth: 36%

Lesson 86/224 | Study Time: 10 Min

Course: Top Quality Companies

IREDA: CMP: 177 Long term Gr: 23% | Fy25 Growth: 36%

🏢 About IREDA:

Indian Renewable Energy Development Agency (IREDA) is a Government of India enterprise under the Ministry of New and Renewable Energy (MNRE). It provides financial support to renewable energy and energy efficiency projects across India. IREDA plays a key role in accelerating India's transition to green energy and reducing carbon emissions.

Incorporated: 1987
Business: Financing Renewable Energy Projects (Solar, Wind, Hydro, Biomass)
Listed: IPO in 2024 (NSE)

🔍 Industry Outlook: Renewable Energy in India

🌍 Growth Drivers:

India's target of 500 GW of non-fossil fuel capacity by 2030
Government schemes: PLI, PM-KUSUM, Solar Parks
Green Hydrogen and Storage Solutions
Electrification of rural and semi-urban areas
ESG focus among global investors

📈 Market Outlook:

India's RE sector is projected to grow at a 15-18% CAGR for the next 10 years.
$200+ billion investment opportunity by 2030.
Increased adoption of green bonds and green financing institutions like IREDA.

📊 Financial Performance Snapshot:

🪙 AUM (Assets Under Management) Growth:

5-Year CAGR: 23%
FY21 to FY25 growth: From ₹27,854 Cr to ₹76,282 Cr
Projected FY26 AUM: ₹95,353 Cr
Long-Term Target FY30: ₹2,37,268 Cr, FY35: ₹5,90,398 Cr

📈 Revenue & Profit Growth:

Revenue grew from ₹1,331 Cr in FY17 to ₹6,743 Cr in FY25.
Profit expanded from ₹210 Cr in FY17 to ₹1,698 Cr in FY25.
5-Year Profit CAGR: 18%
FY26 Profit Estimate: ₹2,262 Cr

💰 Profit Margins:

Improved from 9% in FY20 to 25% in FY25
Consistently above 24% in recent years
FY26E Margin: 25.8%

🧾 Gross NPA Trend:

FY21: 8.8% → FY25: 2.5%
GNPA steadily declining, showing improved asset quality and risk management
FY26E GNPA: ~2.7%

📉 Valuation Insights:

Metric	FY24	FY25 (Est)	FY26 (Est)
EPS (₹)	5.16	6.32	8.4
PE Ratio	26	28 (TTM)	21 (Forward PE)
Fair Value	₹168	₹395 (2030 Target)	₹982 (2035 Target)

IREDA Fair Value: https://docs.google.com/spreadsheets/d/e/2PACX-1vTvrWpZDG-6QTvvf-wtpIcZNcfmO3AGsrMWyWSwkPXmSeJhA2oJJ17Ra9gepD7CGljwOlTr7Wb1GqbB/pubhtml?gid=1027318948&single=true

🕒 Current Trend (FY25):

Metric	Q1	H1	9M	FY25 (Est)
Sales Growth	32%	35%	35%	36%
Profit Growth	30%	33%	31%	36%
Margin (%)	24.8%	24.6%	24.7%	25.2%
GNPA (%)	2.19%	2.19%	2.68%	2.45%

📉 Technical & Chart Analysis (Based on 6M Chart):

Current Price: ₹177
Strong Buy Zone: Near ₹122
2-Year Range: ₹122 to ₹352
Upside Target: ₹352 (2x potential from support)
Past Performance: 3x in 2 years

Near-Term Outlook:

Volatile with corrections, ideal buy range is ₹122–₹140
Consolidation phase with potential upward movement in FY26

Long-Term Outlook:

High visibility on earnings and asset growth
Expect stable margins and improving asset quality
Fair Value by FY30: ₹395, representing ~2.2x from current levels
IREDA is a strategic long-term compounder in Green Financing

📌 Investment Summary:

Parameter	Value
Risk Profile	Low-Moderate (Govt-Backed)
Growth Potential	High (20–25% CAGR)
Key Strength	Asset Quality & Stable Margins
Long-Term Fair Value	₹395 by FY2030
Analyst Verdict	✅ Accumulate on Dips, Long-Term Hold

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Piyush Patel

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