बिज़नेस मॉडल :
IREDA
बिज़नेस मॉडल :
What does this Mini-Ratna do?
▫Government controlled organisation which delivers ₹30 Cr or more profits for last 3 yrs, falls under Mini-Ratna category
▫IREDA provides loans to renewable energy giants like Adani Green, Suzlon & others. Also, to the state governments for Solar energy, Hydro energy, Biomass energy, Waste to energy, wind, energy conservation (All forms of Renewable energy)
Is the business model sustainable?
▫ Definitely, the green energy push is not only from Indian government, it’s there in entire world. Every country, business eventually wants to get Carbon emissions free sooner or later & there’s a compulsory push for it worldwide
🧠 IREDA being a govt owned business, there are & will be some schemes in terms of loans for business owners which will keep this business running as long as the country is not Carbon emissions free
🧠 The renewable energy projects are capital extensive, you will find all the companies having huge debt on them, which basically comes from IREDA to them, and in return, the INTEREST becomes main revenues source for IREDA
From where they finance?
▫We, it’s a taxpayers money 😉
▫They take loans from international loan providers & domestic too
Revenue Sources
▫95% from Interest income
▫4% from investments
▫1% Consultation charges
Number projects financed till date
▫ Total financed 2800+
▫ Functional 1700+
▫ Under implementation 110+
Competitive advantage 💡
▫ PFC, REC, both are not mainly into Renewable energy which kind of creates a monopoly for IREDA
▫ Govt 1 Cr Solar rooftop push should contribute further to IREDA’s financing revenues
✅ Numbers
▫ TTM PROFIT CAGR 36%
▫ Market cap 48k Cr
▫ P/E : 139
▫ Div Yield : 0
🧠 I personally feel this is still a microcap business, *don’t expect stock price running non-stop in upper circuits,
Disclaimer:
Be careful for Long Term investor ( जो इन्वेस्टर को stop loss की समज नहीं है )
#aasthafintech
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