Up 6 times against IPO issue price; this multibagger Navratna PSU stock gains 15% in 5 sessions

Indian Renewable Energy Development Agency (IREDA)- the Navratna PSU stock is in action in Thursday's trade (November 28). The stock has continued with its upward trajectory for the fifth session in a row as with gains touching nearly 15 per cent taking today's day high price into account.

The gains come as most PSUs continue to gain and despite the broader Nifty index slumping in trade today.

At around 12:48 pm, the stock was up over 4 per cent at 205.75, while at the day's high it scaled to Rs 213 per share level on the BSE.

The stock marked its all-time high price of Rs 310 on July 15 and since then has corrected over 31 per cent. But the recent spike follows similar trajectory in most other PSU stocks.

Notably even as the headline Nifty50 index last traded with a steep cut of over 1 per cent, Nifty PSE index in comparison was down by a tad.

As per the Trendlyne data, of the 2 analysts tracking the stock-the consensus recommendation is of 'hold', with one giving a strong sell and the other strong buy recommendation.

Institutional holding in the scrip has decreased by .75 per cent in the September quarter and is at 2.37 per cent as of the end of the previous quarter.

Earlier, ICICI Direct post the company's earnings in October suggested a 12-month target on the stock at Rs 280, implying gains of over 36 per cent from the previous close.

"Continued government’s focus on renewable sector and foray in retail segment is seen to aid business growth and margins aiding delivery of steady return ratio on a sustained basis. Capital raising (approval received) of ₹4500 crore, to make balance sheet for future growth and remain book accretive. Factoring scope of relatively strong business growth, we value the stock at ~6.4x FY26 BV (~43x FY26E EPS) assigning a target of ₹ 280. Maintain Buy rating on the stock," added the company's report dated October 14.

IREDA Q2 results:

IREDA has reported continued strong performance in Q2FY25 delivering 36 per cent YoY growth in AUM at ₹64,564 crore. NII growth came higher at 52 per cent YoY to  Rs 546.8 crore, led by 16 bps YoY improvement in margins to 3.34 per cent. However, credit cost at 21 bps (annualised) compared to reversal in earlier quarters led earnings growth at 36 per cent YoY to Rs 388 crore. Asset quality remained steady with GNPA at 2.19 per cent, though NNPA increased 9 bps QoQ at 1.04 per cent.