IREDA may continue to command high P/E than REC & PFC though REC / PFC may try to catch up a bit…
Reasons are :
There are many small projects which IREDA would finance , and REC , PFC would not. There is a vast potential for such projects in country like ours and the Govt clearly gives subsidy for these projects.
(1) 100% focus on all kinds of renewable energy
(2) Likely to get fund at cheaper rate of interest from IMF, world bank and other developed nations since decarbonisation is the goal.of the entire world and the eye is on India as 80% of our energy is from fossil fuels- Coal Diesel Petrol.
(3) IREDA can give loan to individuals , housing societies, offices, commercial establishments Farmers, for roof top solar, wind mills, Bio gas , Bio ethanol , municipality solid waste to energy, even EV
(4) IREDA can finance all new and emerging technology like Electrolyser , Fuel cell
(5) Finally , it would be the financial performance which would determine the valuation of each stock after few quarters.
IREDA different loan schemes from official website is attached. it is a very intersting read.
click FAQ the last item…Against each form.of renewable energy, refer to all FAQ.
Discl : Invested in REC / PFC at lower level of 80-100. IREDA got allotment through IPO. It is not a buy or sell recommendation. Please do your own assessment before investment.
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