Valuations for IRDEA are insane and currently stock is even more expensive than Bajaj Finance on price to book. They are in a lending business…period. Whether they lend to renewable sector or a sweetshop, underlying fundamentals of a lending business don’t change.
Given that Energy sector and especially renewable has hit a purple patch (refer to article below) with stocks trading at ridiculous valuations, IREDA is just lucky to catch the wave… Once the euphoria subsides, stock might correct heavily or see itself in a long term consolidation. Those who are sitting at 4-5x profit on IPO listing, might consider taking some profit off the table.
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