Indian Renewable Energy Development Agency, commonly known as IREDA, was listed on the NSE on November 29, 2023. Since listing, its stock has given a massive return of more than 150% to its investors. Will IREDA continue to provide such great returns in the future as well? Let’s explore IREDA’s growth potential and IREDA share price target 2025 to 2050 in this article
About IREDA
IREDA (Indian Renewable Energy Development Agency) is an Indian government-owned company that promotes renewable energy in India. It was founded in 1987 to promote the growth of renewable energy projects such as solar, wind, and hydropower. IREDA offers financial support and loans to both private and public-sector companies working on green energy efforts. The organization is critical to India’s efforts to reach renewable energy targets and reduce its dependency on fossil fuels.
IREDA Business Model
- Providing Loans for Renewable Projects: IREDA gives loans to companies that are constructing renewable energy projects like solar, wind, and hydro.
- Interest on Loans: IREDA’s primary source of income is the interest it charges on loans to renewable energy companies.
- Promoting Government Schemes: IREDA gets money by acting as an investor for government renewable energy projects and schemes.
IREDA Fundamental Analysis
| Stock Name | IREDA Ltd. |
|---|---|
| NSE Symbol | IREDA |
| Market Cap | ₹ 44902 Cr. |
| 52W High | ₹ 310 |
| 52W Low | ₹ 137 |
| Stock P/E (TTM) | 26.4 |
| Book Value | ₹ 38.2 |
| Dividend Yield | 0.00 % |
| ROCE | 9.57% |
| ROE | 18.0 % |
| Face Value | ₹ 10.0 |
| Industry PE | 22.5 |
| Price to book value | 4.37 |
| Debt to equity | 6.03 |
| PEG Ratio | 0.52 |
| Quick ratio | 1.16 |
| Shareholders | Sept 2024 | Dec 2024 | March 2025 |
|---|---|---|---|
| Promoters | 75.00% | 75.00% | 75.00% |
| FIIs | 2.02% | 1.85% | 1.74% |
| DIIs | 0.35% | 0.63% | 0.51% |
| Public | 22.62% | 22.51% | 22.74% |
| No. of Shareholders | 26,16,555 | 26,19,358 | 26,79,938 |
Key Factors Driving IREDA Future Growth
- Government Support: IREDA benefits from government plans to increase renewable energy use in India, which creates more opportunities for growth.
- Rising Demand for Green Energy: As India focuses more on clean energy, IREDA will see more projects needing financial support.
- Growth in Renewable Projects: The increase in renewable energy projects, such as solar and wind, means IREDA will have more chances to provide funding.
- Focus on Sustainable Development: More investment in green infrastructure will lead to more business for IREDA as it finances such projects.
- Expanding Rural Projects: IREDA is helping rural areas with renewable energy solutions, which will increase its market in these regions.
- Technological Advancements: New and better renewable energy technologies will require financing, creating growth opportunities for IREDA.
Pros of Investing in IREDA
- Strong Sales Growth: IREDA’s sales have grown at 33% CAGR over the last 3 years.
- Strong Profit Growth: IREDA’s profits have grown at 39% CAGR over the last 3 years.
- Wide Loan Portfolio: With a loan book of ₹69,000 crore as of December 2024, IREDA is a leader in green financing.
- Stable Profit Growth: Over the last three years, IREDA has shown a 58% CAGR in Profit After Tax, indicating solid financial success.
- Government Support: IREDA gains from government efforts to boost India’s renewable energy potential, which creates an optimal growth environment.
- Positive Outlook for the Future: According to analysts, IREDA’s share price has a strong growth potential and is expected to reach ₹1100 by 2030.
Cons of Investing in IREDA
- Low Return on Capital Employed (ROCE): “Company Name” 5-year average ROCE is 8.69%, which shows that it is not using its capital efficiently to generate profits.
- High Price-to-Earnings (P/E) Ratio: IREDA’s P/E ratio is 26.4, which is higher than some of its competitors, such as Power Finance Corp. (PFC) and REC. A high P/E ratio may indicate that the stock is overvalued relative to its peers.
- Dependence on Government Policies: IREDA’s business is heavily influenced by government policies and activities in the renewable energy field. Any changes to these policies may have an impact on IREDA’s operations and financial performance.
- Interest Rate Sensitivity: IREDA’s financial performance is subject to interest rate movements. An increase in interest rates could reduce its net interest income and overall profitability.
- Asset Quality Risks: While IREDA has successfully reduced its non-performing assets (NPAs), a rise in asset quality might harm the organization’s financial stability and investor returns.
- Decrease in Institutional Confidence: DIIs have reduced their holding to 0.51% in March 2025 from 0.63% in December 2024, while FIIs have reduced their holding to 1.74% in March 2025 from 1.85% in December 2024, indicating a decline in institutional confidence in the IREDA’s future growth prospects.
By the end of 2025, the IREDA share price is expected to be around ₹270 in normal conditions. In a bear market, it might be ₹230, and in a bull market, it may cross its 52-week high of ₹300.
| IREDA Share Price Target 2025 | Rupees (₹) |
|---|---|
| 1st Target | 230 |
| 2nd Target | 270 |
| 3rd Target | 300 |
In 2026, the IREDA share price is expected to be around ₹350 in a normal situation. In a bear market, it might be ₹300, and in a bull market, it may cross ₹390.
| IREDA Share Price Target 2026 | Rupees (₹) |
|---|---|
| 1st Target | 300 |
| 2nd Target | 350 |
| 3rd Target | 390 |
According to our analysis, the IREDA share price is expected to be around ₹450 in 2027. In a bear market, it might be ₹360, and in a bull market, it may cross ₹510.
| IREDA Share Price Target 2027 | Rupees (₹) |
|---|---|
| 1st Target | 360 |
| 2nd Target | 450 |
| 3rd Target | 510 |
According to our analysis, the IREDA share price may trade near ₹550 by 2028; bearish conditions could pull it down to ₹430, while a strong bull run might lift it to ₹660.
| IREDA Share Price Target 2028 | Rupees (₹) |
|---|---|
| 1st Target | 430 |
| 2nd Target | 550 |
| 3rd Target | 660 |
In a normal situation, the IREDA share price is projected to be approximately ₹650 in 2029. In a bear market, the value may be as low as ₹520, while in a bull market, it may rise to ₹860.
| IREDA Share Price Target 2029 | Rupees (₹) |
|---|---|
| 1st Target | 520 |
| 2nd Target | 650 |
| 3rd Target | 860 |
In 2030, the IREDA share price is expected to be around ₹800 in a normal situation. In a bear market, it might be ₹650, and in a bull market, it may go up to ₹1100.
| IREDA Share Price Target 2030 | Rupees (₹) |
|---|---|
| 1st Target | 650 |
| 2nd Target | 800 |
| 3rd Target | 1100 |
By 2035, the IREDA share price is projected to be around ₹2000 under normal conditions. In adverse markets, the price could fall to ₹1300, while favorable conditions might push it up to ₹3350.
| IREDA Share Price Target 2035 | Rupees (₹) |
|---|---|
| 1st Target | 1300 |
| 2nd Target | 2000 |
| 3rd Target | 3350 |
Under normal conditions, the IREDA share price might hit ₹4000 by 2040. A bearish trend could lower it to ₹2800, whereas a bullish surge could raise it to ₹10000.
| IREDA Share Price Target 2040 | Rupees (₹) |
|---|---|
| 1st Target | 2800 |
| 2nd Target | 4000 |
| 3rd Target | 10000 |
In 2050, the IREDA share price is expected to be around ₹20,000 in a normal situation. In a bear market, it might be ₹11,500, and in a bull market, it may go up to ₹50,000.
| IREDA Share Price Target 2050 | Rupees (₹) |
|---|---|
| 1st Target | 11,500 |
| 2nd Target | 20,000 |
| 3rd Target | 50,000 |
IREDA Balance Sheet
| Particulars | March 2024 | March 2025 |
|---|---|---|
| Equity Capital | 2,688 | 2,688 |
| Reserves | 5,872 | 7,578 |
| Borrowing | 49,687 | 61,936 |
| Other Liabilities | 4,354 | 7,532 |
| Total Liabilities | 62,600 | 79,734 |
| Fixed Assets | 361 | 349 |
| CWIP | 0 | 0 |
| Investments | 99 | 626 |
| Other Assets | 62,140 | 78,760 |
| Years | Target Price |
|---|---|
| IREDA Share Price Target 2025 | ₹230 to ₹300 |
| IREDA Share Price Target 2026 | ₹300 to ₹390 |
| IREDA Share Price Target 2027 | ₹360 to ₹510 |
| IREDA Share Price Target 2028 | ₹430 to ₹660 |
| IREDA Share Price Target 2029 | ₹520 to ₹860 |
| IREDA Share Price Target 2030 | ₹650 to ₹1100 |
| IREDA Share Price Target 2035 | ₹1300 to ₹3350 |
| IREDA Share Price Target 2040 | ₹2800 to ₹10000 |
| IREDA Share Price Target 2050 | ₹11,500 to ₹50,000 |
Conclusion
IREDA plays an important role in promoting renewable energy in India. It supports the growth of solar, wind, and other clean energy projects through loans and financial assistance. While IREDA has strong government support and a growing market, there are risks like high stock prices and its dependency on government policies. Investors should consider both the potential for growth and the risks involved before investing in IREDA. For more information and the latest financial results, you can visit IREDA official website.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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