Indian Renewable Energy Development Agency Limited (IREDA) fair value: what the stock is really worth
As of Oct 1, 2026: fair value of Indian Renewable Energy Development Agency Limited ₹86.72, price ₹111, upside -21.9%, quality 42 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Oct 1, 2026.
How to read this chart
34‑month range ₹59.29 – ₹286.22 · fair‑value band ₹45.36 – ₹216.02 · the ₹111.00 price screens above the ₹86.72 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Oct 1, 2026.
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Indian Renewable Energy Development Agency Limited, a non-banking financial company, provides financial products and services in the renewable energy and energy efficiency sectors in India.
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Indian Renewable Energy Development Agency Limited, a non-banking financial company, provides financial products and services in the renewable energy and energy efficiency sectors in India. The company promotes, develops, and extends financial assistance for setting up projects relating to new and renewable sources of energy and energy efficiency/conservation. It also generates solar, wind, hydro, biomass, biofuels, and waste to energy power. The company was incorporated in 1987 and is based in New Delhi, India.
Stock analysis
Indian Renewable Energy Development Agency Limited (IREDA) currently trades at ₹111.00, while our model-based Fair Value estimate is ₹86.72, 21.9% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth DCF group reads highest at a median of ₹237.44 per share, and 4 of the 9 models we run sit above the ₹111.00 price.
Bear case: the Asset-Based group reads lowest at ₹32.88, and 5 of the 9 models stay below the price. Evidence for this calculation is high.
Scenario range: ₹45.36 (bear) to ₹216.02 (bull), the price of ₹111.00 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 42/100 (below-average quality), in the Financial Services sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Indian Renewable Energy Development Agency Limited reported revenue of ₹82.6B in FY2026 versus ₹27.8B in FY2022, a compound +31.3%/yr. Reported net income was ₹18.7B in FY2026, compounding +31.1%/yr from FY2022.
Key figures
Market cap ₹309B (≈ $3.2B) · P/E ratio 15.8 · P/S ratio 3.58 · EPS (TTM) ₹7.03 · Net margin 22.7% · Return on equity 15.5% · Return on assets (EBIT) 4.4% · Operating margin 85.4%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 42 out of 100 (low confidence).
What moves the price
The share trades about 28% below its 52-week high and 3% above its 52-week low, currently below its 200-day average.
For context, the median of 10 Financial Services peers we cover trades at 10% fair-value upside, at −22%, IREDA screens richer than that median.
Fair Value models
Bear ₹45.36Fair Value ₹86.72Bull ₹216.02
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2026 figures (about 6 months old). Earnings retained since then (₹3.54 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.100/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+24.9%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+35.2%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+26.5%
Start year 2021 (pandemic). Over 10 years: +31.3% a year
Revenue growth 13 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+20.8%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+8.8%
Earnings growth per share plus dividend.
Earnings per share, growth per year+8.8%
Dividend (yield on the price)0.0%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.8.8% vs 5.9%, steady
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.1% → 63%
Start year 2021 (pandemic)
Growth Forecast
Price in line with expectations
The price assumes about as much growth as the company has delivered so far.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+24.9%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect
n/a
No analyst forecast available.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +20.0% a year for the price.
Compare Indian Renewable Energy Development Agency Limited with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Credit Services · 334 stocks
Beats the industry median on 4/14 measures
Overall it trails its industry peers.
Valuation
Quality Score41 · Bottom 25%
Fair Value upside−21.9% · Below median
Profitability
Return on equity (TTM)15.5% · Top 25%
Return on assets2.2% · Below median
Net margin (TTM)69.3% · Top 25%
Operating margin (TTM)85.4% · Top 25%
Growth and dividend
Revenue growth23.7% · Above median
Dividend yield (TTM)0.0% · Bottom 25%
Balance sheet
Debt / equity5.41× · Highest 25%
Valuation Multiplesvs Credit Services median · lower = cheaper
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Cite: Fair Value Calculator (2026). "Indian Renewable Energy Development Agency Limited Fair Value". https://www.fairvalue-calculator.com/stock/IREDA
Frequently asked questions
Is Indian Renewable Energy Development Agency Limited (IREDA) overvalued or undervalued?
As of Oct 1, 2026, our model estimates a fair value of ₹86.72 versus a price of ₹111.00, about −22% upside (overvalued).
What is the fair value of IREDA?
Our model-based fair value for Indian Renewable Energy Development Agency Limited is ₹86.72 (as of Oct 1, 2026), built from audited fundamentals. The current price: ₹111.00.
What is the quality score of IREDA?
Indian Renewable Energy Development Agency Limited has a Quality Score of 42/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Indian Renewable Energy Development Agency Limited (IREDA)?
Our model-based price target is the fair value of ₹86.72 (as of Oct 1, 2026) from 11 valuation models. Cautious scenario ₹45.36, optimistic scenario ₹216.02. It is a calculation from audited fundamentals, not an analyst target.
What is the Indian Renewable Energy Development Agency Limited stock forecast for 2026?
Our models put fair value at ₹86.72, about −22% upside versus a price of ₹111.00 (overvalued). Cautious scenario ₹45.36, optimistic scenario ₹216.02. The calculation is refreshed regularly with new filings.
What is the revenue of Indian Renewable Energy Development Agency Limited (IREDA)?
Indian Renewable Energy Development Agency Limited reported trailing-twelve-month revenue of about ₹28.4B (latest available figure, as of Oct 1, 2026).
What growth is priced into Indian Renewable Energy Development Agency Limited (IREDA)?
For today's price to be fair in a discounted-cash-flow model, Indian Renewable Energy Development Agency Limited would have to grow free cash flow by +24.9 % per year for five years (discount rate 10.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +26.5 % per year. As of Oct 1, 2026.
What discount rate (WACC) does the fair value of IREDA use?
Our models discount Indian Renewable Energy Development Agency Limited at 10.9 %: a base by market capitalisation (mid), damped by beta 0.03, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Indian Renewable Energy Development Agency Limited that is +24.9 % per year a year over ten years, using the same discount rate (10.9 %) and the same formula as our fair value.
How much growth has Indian Renewable Energy Development Agency Limited (IREDA) delivered so far?
Over the past 5 years revenue at Indian Renewable Energy Development Agency Limited grew +26.5 % a year. The price currently implies +24.9 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Indian Renewable Energy Development Agency Limited (IREDA) growing?
The median revenue growth in the sector is +6.0 % a year. That is the yardstick for the growth priced into Indian Renewable Energy Development Agency Limited (+24.9 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Indian Renewable Energy Development Agency Limited (IREDA)?
The free-cash-flow yield on the price is 9.91 %: that much free cash flow Indian Renewable Energy Development Agency Limited produces per unit of market value. When it exceeds the discount rate of our models (10.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Indian Renewable Energy Development Agency Limited (IREDA)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Indian Renewable Energy Development Agency Limited it is ₹86.72 per share (as of Oct 1, 2026), against a price of ₹111.00. It is the blended result of 11 valuation models (cash flow, earnings, asset, dividend).
Is Indian Renewable Energy Development Agency Limited stock overvalued or undervalued in 2026?
As of Oct 1, 2026, IREDA trades above its calculated fair value: price ₹111.00, fair value ₹86.72, a gap of about −22% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of IREDA?
No. The price is what the market pays today (₹111.00); the fair value is what the company's own numbers justify (₹86.72). For Indian Renewable Energy Development Agency Limited the two are ₹24.28 per share apart. That gap is exactly why we show both numbers side by side.
How much is Indian Renewable Energy Development Agency Limited worth?
The market values Indian Renewable Energy Development Agency Limited at about ₹309B (market capitalisation, as of Oct 1, 2026). Per share that is ₹111.00; our models calculate a fair value of ₹86.72 per share.
What do the bullish and bearish scenarios say about IREDA?
Our models span a range for Indian Renewable Energy Development Agency Limited: cautious scenario ₹45.36, base ₹86.72, optimistic ₹216.02 per share (as of Oct 1, 2026, price ₹111.00). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of IREDA?
Indian Renewable Energy Development Agency Limited trades at a price-to-earnings ratio of 15.8 (as of Oct 1, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹86.72 is built from several models across several years. Other multiples: P/B 2.2, P/S 10.9, EV/EBITDA 44.0.
How solid is the balance sheet of Indian Renewable Energy Development Agency Limited (IREDA)?
Balance-sheet figures for Indian Renewable Energy Development Agency Limited (as of Oct 1, 2026): return on equity 15.5%, debt of 5.41 per unit of equity. They feed the Quality Score of 42/100, which measures business quality independently of the share price.
How far is IREDA from its 52-week high?
Indian Renewable Energy Development Agency Limited trades at ₹111.00, about 28% below its 52-week high of ₹153.73 and 3% above the low of ₹107.69 (as of Oct 1, 2026). Distance from the high says nothing about value: that is what the fair value of ₹86.72 is for.
Which stocks are comparable to Indian Renewable Energy Development Agency Limited?
From the same area (Financial Services) we also value Visa Inc, Mastercard Incorporated, American Express Company, Capital One Financial Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Indian Renewable Energy Development Agency Limited stock attractive at the current price?
The data as of Oct 1, 2026: price ₹111.00, calculated fair value ₹86.72 (−22%), Quality Score 42/100, from 11 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of IREDA calculated?
We run Indian Renewable Energy Development Agency Limited through 11 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹86.72, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.7 % above its aggregate fair value. Indian Renewable Energy Development Agency Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Indian Renewable Energy Development Agency Limited (IREDA)?
The closing price on Oct 1, 2026 was ₹111.00. Our model-based fair value is ₹86.72, about −22% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Indian Renewable Energy Development Agency Limited right now?
Weak quality (42/100) and above fair value at the same time, the margin of safety is missing on both counts. The model range is unusually wide (₹45.36 to ₹216.02). The outcome hinges heavily on assumptions, so read the point estimate with caution. For a financial, book-value and earnings-based methods matter more than a cash-flow DCF, which fits banks and insurers poorly.
Where does the earnings growth of Indian Renewable Energy Development Agency Limited (IREDA) come from?
Earnings per share at Indian Renewable Energy Development Agency Limited grew +3.0 % a year from 2015 to 2026. Broken into its drivers: revenue per share +9.3 %, EBIT margin +3.5 %, tax rate +7.6 %, residual (interest, one-offs) −15.4 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Indian Renewable Energy Development Agency Limited
How large is the market capitalisation of Indian Renewable Energy Development Agency Limited (IREDA)?
The market capitalisation of Indian Renewable Energy Development Agency Limited is ₹309B (≈ $3.2B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Indian Renewable Energy Development Agency Limited (IREDA)?
The price-to-sales ratio of Indian Renewable Energy Development Agency Limited is 3.58 (P/E × margin). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Indian Renewable Energy Development Agency Limited (IREDA)?
Earnings per share at Indian Renewable Energy Development Agency Limited are ₹7.03 (price ÷ EPS = P/E 15.8). Earnings per share over the last twelve months: total profit spread across every single share.
What is the net margin of Indian Renewable Energy Development Agency Limited (IREDA)?
The net margin of Indian Renewable Energy Development Agency Limited is 22.7% (fiscal year 2026). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Indian Renewable Energy Development Agency Limited (IREDA)?
The return on equity (ROE) of Indian Renewable Energy Development Agency Limited is 15.5% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Indian Renewable Energy Development Agency Limited (IREDA)?
On an EBIT basis the return on assets of Indian Renewable Energy Development Agency Limited is 4.4% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Indian Renewable Energy Development Agency Limited (IREDA)?
The operating margin of Indian Renewable Energy Development Agency Limited is 85.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Indian Renewable Energy Development Agency Limited (IREDA)?
Revenue at Indian Renewable Energy Development Agency Limited is growing +23.7% versus a year earlier (3y avg +35.2%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Indian Renewable Energy Development Agency Limited (IREDA)?
Earnings per share at Indian Renewable Energy Development Agency Limited are growing +33.0% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Indian Renewable Energy Development Agency Limited (IREDA) carry?
The net debt of Indian Renewable Energy Development Agency Limited is ₹738B (fiscal year 2026, ≈ 24.1 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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