Indian Renewable Energy Development Agency Limited Fundamental Analysis (BSE: IREDA.BO)
Indian Renewable Energy Development Agency Limited Fundamental Analysis (BSE: IREDA.BO)
Indian Renewable Energy Development Agency Limited (BSE: IREDA.BO) shows strong financial fundamentals with a PE ratio of 14.17, profit margin of 22.29%, and ROE of 14.20%. The company generates $88.3B in annual revenue with strong year-over-year growth of 36.80%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze IREDA.BO's fundamental strength across five key dimensions:
Efficiency Score
WeakIREDA.BO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentIREDA.BO trades at attractive valuation levels.
Growth Score
ExcellentIREDA.BO delivers strong and consistent growth momentum.
Financial Health Score
WeakIREDA.BO carries high financial risk with limited liquidity.
Profitability Score
ModerateIREDA.BO maintains healthy but balanced margins.
Key Financial Metrics
Is IREDA.BO Expensive or Cheap?
P/E Ratio
IREDA.BO trades at 14.17 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, IREDA.BO's PEG of 1.26 indicates fair valuation.
Price to Book
The market values Indian Renewable Energy Development Agency Limited at 1.95 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -20.02 times EBITDA. This is generally considered low.
How Well Does IREDA.BO Make Money?
Net Profit Margin
For every $100 in sales, Indian Renewable Energy Development Agency Limited keeps $22.29 as profit after all expenses.
Operating Margin
Core operations generate 38.56 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $14.20 in profit for every $100 of shareholder equity.
ROA
Indian Renewable Energy Development Agency Limited generates $2.01 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Indian Renewable Energy Development Agency Limited produces operating cash flow of $13.63B, showing steady but balanced cash generation.
Free Cash Flow
Indian Renewable Energy Development Agency Limited generates strong free cash flow of $13.56B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.83 in free cash annually.
FCF Yield
IREDA.BO converts 4.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
14.17
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.26
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.95
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
5.64
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How IREDA.BO Stacks Against Its Sector Peers
| Metric | IREDA.BO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 14.17 | 20.15 | Better (Cheaper) |
| ROE | 14.20% | 630.00% | Weak |
| Net Margin | 22.29% | -696.00% (disorted) | Strong |
| Debt/Equity | 5.64 | 0.87 | Weak (High Leverage) |
| Current Ratio | 0.00 | 803.39 | Weak Liquidity |
| ROA | 2.01% | 286.00% | Weak |
IREDA.BO outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Indian Renewable Energy Development Agency Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-14.33%
Industry Style: Value, Dividend, Cyclical
DecliningEPS CAGR
105.66%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-2797.12%
Industry Style: Value, Dividend, Cyclical
Declining