President of India’s portfolio multibagger stock hit upper circuit and 52-week high as it posts 67 per cent growth in net profit, earnings per share up by 57 per cent!

The stock gave multibagger returns of over 200 per cent from its 52-week low of Rs 49.99 per share.

Indian Renewable Energy Development Agency Ltd (IREDA) unveiled its audited financial outcomes of Quarterly Results (Q3) of the fiscal year 2023-24. The company achieved an impressive 67 per cent surge, attaining a Profit After Tax (PAT) of Rs 335.54 crores for the quarter. This remarkable performance is credited to a consistent expansion in the Loan Book and a substantial reduction in Net Non-Performing Assets (NPAs), dropping from 2.03 per cent to 1.52 per cent year-on-year.

In a meeting held at Kevadia, Gujarat, the Board of Directors approved the Audited Financial Results for the third quarter of the fiscal year 2023-24, commending the company's exceptional performance and its sustained growth trajectory.

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).

Earlier, IREDA and Indian Overseas Bank (IOB) partnered through a signed MoU to boost renewable energy project funding across India. This collaboration involves co-lending, loan syndication, streamlined processes, and potentially fixed interest rates, building on IREDA's existing partnerships with other financial institutions for nationwide renewable energy development.

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 stock was listed on Wednesday, November 29, 2023. The stock was listed at Rs 60 per share. The President of India owns 2,01,58,23,529 shares or 75 per cent stake in the company.  Today, shares of IREDA hit 5 per cent upper circuit to an intraday high & 52-week high of Rs 156.30 per share from its previous closing of Rs 148.90. At the closing bell, shares of the company were trading at Rs 154.05 per share, up 3.46 per cent.

The shares of the company 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 200 per cent from its 52-week low of Rs 49.99 per share. Investors should keep an eye on this stock.