IREDA share price in focus after Q3 results. Should you buy, sell or hold the PSU stock?

REDA share price will be in focus on Friday, January 10, after the company reported its earnings for the third quarter of FY25. Indian Renewable Energy Development Agency Ltd (IREDA), the state-run financier, announced its Q3 results after the Indian stock market closed on Thursday. Hence, IREDA stock is expected to react to its Q3 results in today’s trading session.

The ‘Navratna’ PSU company, IREDA reported a net profit of ₹425.38 crore in Q3FY25, registering a growth of 27% from ₹335.5 crore in the same period last fiscal year.

The company’s total revenue from operations during the quarter ended December 2024 increased 35.6% to ₹1,698.45 crore from 1,208.10 crore, year-on-year (YoY).

Net interest income (NII) in Q3FY25 was up 39% to ₹622.3 crore from ₹448.1 crore, YoY. Operating margins, however, fell by 330 basis points (bps) to 30.42% from 33.72%, YoY.

The state-owned NBFC’s asset quality improved as the gross non-performing assets (NPAs) dropped to 2.68% in the third quarter of FY2025, compared to 2.90% in the same period a year ago.

The company’s outstanding loan book was at ₹68,960 crore as of the quarter ended December 31, 2024. The outstanding loan book was at ₹50,580 in the same period the previous year.

Should you buy IREDA shares?

Anshul Jain, Head of Research at Lakshmishree Investment and Securities, said that IREDA posted strong financial results (both sequentially and yearly).

“The strong economic performance reflects IREDA’s strategic focus on leveraging opportunities in the renewable energy sector, driving sustained profitability and revenue growth. With renewable energy demand expected to accelerate further, the company remains well-positioned for long-term expansion. IREDA stock is anticipated to react positively during the market opening, presenting an attractive buy opportunity for long-term investors,” said

Sumeet Bagadia, Executive Director at Choice Broking, suggests holding IREDA shares to existing investors and taking positional calls to new investors.

“IREDA shares have strong support at ₹200. On the technical chart, the stock is looking sideways, but if it breaks above the ₹230 apiece level on a closing basis, we can expect the stock to touch the ₹260 mark in the medium term. So, IREDA shareholders are advised to hold the scrip for a near-term target of ₹230 and a medium-term target of ₹260. Fresh investors can also take a positional call in IREDA shares for a medium-term target of ₹260,” Bagadia said.

IREDA Stock Price Trend

IREDA share price closed 3.31% lower at ₹215.90 on Thursday on the BSE. IREDA stock price has fallen over 6% in three months and is down more than 10% in six months. However, IREDA shares have given multibagger returns of 110% in the past one year.

IREDA stock hit its 52-week high at ₹310 on July 15, 2024, while it touched its 52-week low of ₹101.20 on January 10, 2024, as per BSE data.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.