📢 ICICI Direct initiates coverage on IREDA with a BUY rating
CMP: ₹174 | Target: ₹220 | Upside: 26%
📊 ICICI Direct’s Investment Rationale:
▪️ AUM growth estimated at ~28–29% CAGR (FY26–FY27E)
▪️ RoA expected to normalize at ~2%
▪️ Government’s renewable energy push seen aiding loan growth
▪️ Diversified funding mix and AAA rating supporting low-cost borrowings
▪️ Retail expansion through new subsidiary also seen as a growth lever
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📉 Key Risks (as per ICICI Direct):
▪️ Substantial exposure to private sector could impact NPAs
▪️ Rising competition may pressure margins
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🔍 Key Highlights from Q4FY25:
📈 AUM up 28% YoY to ₹76,282 Cr
💰 Earnings up 49% YoY to ₹502 Cr
📉 Gross NPA improved 23 bps QoQ to 2.45%
⚙️ Credit cost steady at ₹129 Cr vs ₹104 Cr QoQ
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📘 Valuation View:
Stock valued at ~4.1x FY27E BV (~25x FY27E EPS).
RoA estimated to remain in the 1.9–2% range in the near term.
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