NIM is 4% average of last 3 years as published during the IPO.
NIM that of REC PFC is 3.42 to 3.46 % .
But that does not explain so much difference in valuation.
Even 40% portfolio of emerging RE which IREDA has no competition does not explain such huge difference in valuation.
I can only say that it is an euphoric move by investors on renewals plus all PSU stocks getting re-rated. Market perhaps discounts PM Modi’s re-election in 2024.
Discl: Disposed off IREDA which I had got a small allotment in IPO and shifted the fund to PFC / REC where I see a lot of scope for catch up.
This is not a buy sell recommendation. Please do your own assessment before you invest.
PSU stocks have inherent risk of frequent Govt policy changes , elections ahead
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