IREDA shares: For the past three sessions, the stock price of Indian Renewable Energy Development Agency (IREDA) Limited has been significantly rising. The price of an IREDA share on the NSE has risen by a significant 25% in just three days, from ₹240.53 to ₹303.70 a share. This rising trend implies that IREDA’s stock still has potential in excess of its current Q1 performance. The PSU stock began trading at ₹282.90 per share, but it gained strength fast and closed the day at ₹303.70, a gain of almost 5%. Notably, the price of IREDA’s shares also hit a record high during this rise.
Stock market experts said that the market is anticipating strong Q1 earnings from the PSU business today. With IREDA’s emphasis on financing the real estate industry, company growth is anticipated to continue at a robust rate of 25–30% CAGR, with additional financing predicted to account for about 29% of market share. A buy-on-dip strategy was recommended for IREDA shares before to the announcement of its Q1 2024 results on Friday. According to them, the price of IREDA’s shares has formed a solid base at ₹250, and if today’s Q1 results live up to market expectations, the PSUs stock may soon reach ₹350.
IREDA news: Today’s Q1 results
The BSE website states that IREDA has scheduled the date of their Q1 results announcement for July 12, 2024.
Speaking about the possible outcomes of IREDA’s Q1FY25, Manish Chowdhury, Head of Research at StoxBox, stated: “IREDA’s strategic role as the nodal agency for promoting, developing, and financing renewable energy and energy efficiency (EE) projects in India is significant, especially considering India’s commitment to the Sustainable Development Goals (SDGs) and the targets set on renewable energy capacities.” Due in large part to IREDA’s emphasis on financing the real estate industry, company growth is anticipated to continue at a robust rate of 25–30% compound annual growth, with a market share of about 29% in the added financing. The June quarter saw loan sanctions of Rs. 9,136 crores, up 382.62% YoY, according to IREDA’s Q1FY25 business update.
The PSU’s loan disbursements for the quarter totaled Rs. 5,320 crores, up 67.61% YoY, according to the StoxBox expert. This implies even more that the business will generate strong results.
Budget 2024 in focus
Amit Goel, co-founder and chief global strategist at Pace 360, pointed to the Union Budget 2024 trigger for IREDA shares, saying, “We could see a Production-Linked Incentive (PLI) scheme related to the renewable energy sector, including devices such as windmills and solar panels, in the upcoming budget.” The objective of obtaining 50% of India’s electricity consumption from renewable sources by 2030 is likely to drive greater attention toward renewable energy.”
Target price for IREDA shares
When asked about the IREDA share price’s technical outlook, Choice Broking Executive Director Sumeet Bagadia responded, “IREDA shares are looking positive on the chart pattern.” On the daily and weekly charts, the PSU stock is encountering resistance at ₹300 and ₹350, having established a robust base at ₹250. Therefore, if the IREDA share price closes over the immediate barrier of ₹300, it might soon approach ₹350.
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(Disclaimer: This analysis’s opinions and suggestions are those of the individual analysts or brokerage firms; Businessuncover does not endorse them. Because individual situations may differ and market conditions can change quickly, we highly advise investors to seek the advice of recognized specialists before making any investment decisions.)
