IREDA Share Price Target From 2025 to 2030
IREDA Share Price Target From 2025 to 2030: Indian Renewable Energy Development Agency Ltd. (IREDA) is a government-owned financial institution providing finance and developing renewable energy schemes in India. IREDA was established in 1987 and is India’s clean energy movement flagship by financing wind, solar, biomass, and small hydro schemes.
- Industry: Renewable Energy Finance
- Leadership: The firm is governed by a board appointed by the government who operates towards India’s clean energy goal.
- Market Capitalization: ₹41,902 Crore
- Competitors: REC Limited, PFC (Power Finance Corporation), and other NBFCs lending to clean energy projects.
2. Financial Health: How Strong Is It?
Revenue & Profit Growth
- IREDA has reported consistent revenue and profit growth in the recent past due to increasing investments in renewable energy. The company has continued to increase its loan disbursements in the past five years, supporting net interest income growth.
Debt vs. Equity
- Debt-to-Equity Ratio: 5.85
- Industry Benchmark: Lower industry average, i.e., IREDA’s higher reliance on debt.
Earnings Per Share (EPS) & Return on Equity (ROE)
- EPS (TTM): 5.71
- ROE: 15.47%
Cash Flow Strength
- Strong cash flow position is a guarantee that IREDA is in a position to carry on operations and finance future expansion without fear of liquidity-related concerns.
3. Stock Performance: Trends & Technical Analysis
Key Stock Metrics
- 52-Week High: ₹310.00
- 52-Week Low: ₹121.05
- Current Price: ₹147.70
- P/E Ratio: 27.30 (Higher than industry average of 23.08, indicating overvaluation)
- P/B Ratio: 4.49 (Trading premium over book value)
Technical Indicators
- RSI (14-Day): 28.0 (Oversold, recovery potential)
- MACD: -9.8 (Bearish, shows declining momentum)
- ADX: 23.2 (Weak trend strength)
- ROC (125-Day): -38.4 (Sharp decline, needs recovery)
These indicators tell us that although the stock is in a bearish trend, it can be recovered if market conditions permit.
4. Dividends & Returns: What Do Investors Get?
- IREDA does not offer dividends at present, plowing back profits to enhance growth. Shareholders have to look for the capital appreciation rather than the dividend payout.
5. Growth Potential: Future Projections
IREDA will be gaining from India’s government-led shift to renewable energy. IREDA is accumulating its loan book, funding large-sized schemes in wind, solar, and green hydrogen space.
Growth Drivers
- Government Initiatives: India’s 2030 goal of 500 GW of renewable energy capacity.
- Green Finance: Stronger finance from national and international markets.
- IPO Expansion: IREDA’s recent IPO has bolstered its capital strength.
IREDA Share Price Target From 2025 to 2030
| YEAR | SHARE PRICE TARGET (₹) |
| 2025 | ₹320 |
| 2026 | ₹520 |
| 2027 | ₹720 |
| 2028 | ₹920 |
| 2029 | ₹1120 |
| 2030 | ₹1320 |
These targets rely on revenue expansion, government action, and increased investments in green energy.
6. External Drivers Affecting the Stock
- Interest Rate Trends: Increasing interest rates can affect IREDA’s borrowing expenses.
- Market Volatility: Global economic trends influence stock performance.
- Government Policies: Incentives to green finance will trigger growth.
- Institutional Investors: Rise in interest of foreign and domestic institutions indicates optimism.
Institutional Holdings
- Promoters: 75.00% (No change)
- Retail & Others: 22.51%
- Foreign Institutions: 1.85% (Down from 2.02%)
- Mutual Funds: 0.28% (From 0.19%)
7. Risks: What Can Go Wrong?
Investors should be aware of risks though IREDA’s growth opportunity is good:
- Market Risk: Economic downturn can damage the stock price.
- Business Risk: Delaying the use of renewable energy would be a blow to revenues.
- Financial Risk: Over-gearing against debt is one to worry about.
- Regulatory Risk: Changing the government policies in any manner would affect the business.
FAQ Section For IREDA Share Price
1. Is IREDA a good long-term investment?
Yes, being a government-sponsored venture in a firm position in India’s renewable energy market, IREDA is a good long-term bet.
2. Why is IREDA’s stock price so volatile?
The share is affected by market sentiment, variation in interest rates, and government policies.
3. Does IREDA pay dividend?
No, IREDA reinvests earnings in expanding its size of operation.
4. What will be the price per share of IREDA in 2030?
Under the assumption of growth trends, IREDA’s share price will be ₹1320 in 2030.
5. Is high debt of IREDA a cause for concern?
While the Debt-to-Equity ratio (5.85) is high, the company has the government as its backer, thus keeping financial risk at a minimum.
6. What are the main drivers for growth of IREDA?
- Government support in abundance
- Increasing renewable energy projects
- Increasing institutional demand
- Increasing loan book
IREDA is a good bet. for those that wish to bet on India’s renewable energy ride. Even as short-term volatility cannot be wished away, long-term growth prospects are high, and hence a safe bet for long-term investors.
