President of India’s portfolio gains Rs 258,42,85,76,417 from this multibagger stock; Mini-Ratna company signs MoU with Punjab National Bank – know more here!

The stock gave multibagger returns of over 250 per cent from its 52-week low of Rs 50 per share.

Indian Renewable Energy Development Agency Ltd. (IREDA) and Punjab National Bank (PNB) have joined hands through the signing of a Memorandum of Understanding (MoU) aimed at advancing renewable energy initiatives across the nation. The agreement, signed at IREDA's Registered Office in New Delhi today, paves the way for joint efforts in co-lending and loan syndication for a diverse spectrum of Renewable Energy projects.

The MoU comprises various provisions aimed at enhancing support for Renewable Energy projects. These include joint lending, loan syndication and underwriting, management of Trust and Retention Account (TRA) for IREDA borrowers, and working towards competitive terms of sanction, including pricing on IREDA borrowings. Also, both IREDA and PNB can invest in the Bonds issued by either organization through this collaboration. This collaboration further strengthens IREDA's successful partnerships with other prominent financial institutions, including Bank of Baroda, Bank of India, Union Bank of India, India Infrastructure Finance Company Limited, Bank of Maharashtra, and Indian Overseas Bank. These MoUs similarly focus on co-lending and loan syndication for a wide range of Renewable Energy projects across the country.

Expressing his views on this pivotal collaboration, Shri Pradip Kumar Das, CMD of IREDA, remarked, "This strategic partnership between IREDA and PNB marks a significant step in our commitment to accelerate the growth of renewable energy in the country. By combining our strengths and resources, we aim to provide robust financial support to a diverse range of Renewable Energy projects, fostering sustainability and environmental awareness. Through the MoU and prior agreements with other leading financial institutions, IREDA is well-positioned to fund large-scale renewable energy projects, aligning with the Hon’ble Prime Minister’s COP26 announcement to achieve a 500 GW Non-Fossilbased electricity generation capacity by 2030."

IREDA, a government-owned entity, plays a crucial role in India's renewable energy sector. Established in 1987, it promotes and finances projects in various renewable sources, including solar, wind, hydro, and bioenergy. Its motto, "Energy forever," reflects its commitment to a sustainable future. IREDA is a Mini Ratna (Category - I) company. IREDA is a financial services company that provides financial assistance for renewable energy projects in India. The company offers a variety of financial products, including loans, guarantees, and debt refinancing. IREDA is committed to helping India transition to a greener future, and its financing schemes are designed to facilitate this transition.

The President of India’s portfolio owns 2,01,58,23,529 shares or 75 per cent stake in the company. From its 52-week low of Rs 50 per share to today’s closing price of Rs 178.2 per share, the stock gave multibagger returns of 256.4 per cent (Rs 128.2 per share gaining). Therefore, 2,01,58,23,529 shares x Rs 128.2 per share = Rs 258,42,85,76,417.

Key financial highlights for Q3FY24 compared to Q3FY23 are as follows:

• Profit After Tax: Rs 335.54 crore as against Rs 200.75 crore (up by 67.15 per cent).
• Revenue from Operations: Rs 1,253.20 crore as against Rs 868.98 crore (up by 44.21 per cent).
• Loan Book: Rs 50,579.67 crore as against Rs 37,887.69 crore (up by 33.50 per cent).
• Net worth: Rs 8,134.56 crore as against Rs 5,591 crore (up by 45.49 per cent).
• Net NPAs: 1.52 per cent as against 2.03 per cent (reduction by 25 per cent in percentage terms).
• Gross NPAs: 2.90 per cent as against 4.24 per cent (reduction by 31.70 per cent in percentage terms).
• Earnings Per Share: Rs 1.38 as against Rs 0.87 (up by 57.33 per cent).

The stock was listed on Wednesday, November 29, 2023. The stock was listed at Rs 60 per share. Today, shares of IREDA gained 0.17 per cent to Rs 178.20 per share with an intraday high of Rs 182.30 and an intraday low of Rs 173.70 per share from its previous closing of Rs 148.90.

The company's shares have a PE of 48x, an ROE of 15.4 per cent and an ROCE of 8.2 per cent. The stock gave multibagger returns of over 250 per cent from its 52-week low of Rs 50 per share. Investors should keep an eye on this stock.

Disclaimer: The article is for informational purposes only and not investment advice. 

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