Green Energy NBFC company Initiates JV for Upper Karnali Hydro-Electric Project in Nepal
From its 52-week low of Rs 114.3 per share to today’s trading price of Rs 206.12 per share, the stock gave multibagger returns of 80.33 per cent.
Indian Renewable Energy Development Agency (IREDA) announced progress on its equity investment in the 900 MW Upper Karnali Hydro-Electric Power Project in Nepal. This follows the Board of Directors' in-principle approval on July 16, 2024, for up to 10 per cent equity investment in M/s GMR Upper Karnali Hydro Power Limited and M/s Karnali Transmission Company Pvt. Ltd., in partnership with SJVN Limited. The project is subject to necessary approvals from the Government of India and other statutory and regulatory bodies.
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On January 15, 2025, IREDA signed a non-binding Joint Venture Agreement with key stakeholders, including GMR Energy Limited, GMR Power and Urban Infra Limited, GMR Lion Energy Limited (Mauritius), SJVN Limited, Nepal Electricity Authority, and GMR Upper Karnali Hydropower Limited.
Additionally, the Department of Investment and Public Asset Management (DIPAM) approved IREDA's equity investment of 5% each in M/s. GMR Upper Karnali Hydro Power Limited and M/s. Karnali Transmission Company Pvt. Ltd., as per the Ministry of New and Renewable Energy's recommendation on January 15, 2025.
In the Quarterly Results of Q3FY25, the company reported revenue of Rs 1638 crore with a 36 per cent jump from the same quarter last year. Net profit jumped by 27 per cent to 425 crore.
Indian Renewable Energy Development Agency Ltd was incorporated as a fully owned Govt. of India enterprise under the administrative control of the MNRE. Furthermore, the company was notified as a public financial institution and is also registered as a non-deposit taking NBFC with the RBI.
The company was established for the promotion, development and commercialisation of new and renewable sources of energy and provides financial assistance to energy efficiency and conservation projects. The Ministry of New and Renewable Energy, Government of India has given IREDA the 'Navaratna Status. RBI classified company as “Infrastructure Finance Company”.
The company currently has a market capitalisation of Rs 55,381 crore, with its stock priced at Rs 206. The stock has a 52-week high and low of Rs 310 and Rs 121, respectively. It trades at a price-to-earnings (P/E) ratio of 36.1x, whereas the industry price-to-earnings (P/E) ratio is 28.7x, indicating stock trading at a discount, with a book value of Rs 34.7. The stock price of the company has given 65 per cent returns in last one year. From its 52-week low of Rs 114.3 per share to today’s trading price of Rs 206.12 per share, the stock gave strong returns of 80.33 per cent.
Investors should keep an eye on this Large-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.