IREDA share price: Experts see big upside after strong Q1 results 2024. Buy or sell? – EQ
In Short : IREDA share price: The Indian Renewable Energy Development Agency (IREDA) has emerged as a significant player in the Indian stock market, being the first PSU company to declare its promising Q1 results 2024.
In Detail : The company’s 30 percent YoY rise in PAT and a 32 percent rise in operational revenue have set a positive tone for the current results season, particularly in the banking and financial space. So, when Dalal Street resumes trading on Monday, the IREDA share price is expected to remain under the radar of bulls.
Stock market experts are optimistic about IREDA’s future performance, citing the company’s robust quarterly numbers as a sign of its sound financial and business condition. They anticipate that IREDA will benefit from the subsidy under the Production Linked Incentive (PLI) scheme. This scheme, which the Union Finance Minister Nirmala Sitharaman may announce in the upcoming Union Budget 2024, is designed to boost the manufacturing sector, including renewable energy companies like IREDA. The experts predict a sharp upside move in IREDA’s share price in the near term, with a target of ₹350 per share.
IREDA Q1 results 2024 review
Reviewing the Q1 results 2024 declared by IREDA on Friday, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, “IREDA has reported PAT at ₹383.69 crore as against ₹294.58 crore in the corresponding period of the previous financial year, which means the sate-owned company has registered around 30 percent YoY rise in PAT. Similarly, the company has registered over 32 percent YoY revenue from operations in the June 2024 quarter. The state-owned NBFC reported a 386 percent YoY rise on the sanctioned loan front.”
Gorakshkar said that IREDA became India’s first banking and financial company to declare its Q1 results for 2024 in the current earnings season. This signals the company’s eagerness to share its quarterly numbers ahead of the Union Budget 2024. He said the market expects subsidies for renewable energy companies under the PLI Scheme in the 2024 budget. If FM Sitharaman declares this subsidy, IREDA will likely benefit from this move, potentially leading to a sharp upside in the IREDA share price soon after robust Q1 results 2024.
IREDA share price target
Expecting more upside in IREDA share price, Sumeet Bagadia, Executive Director at Choice Broking, said, “IREDA share price is looking positive on the chart pattern. The stock is facing a minor hurdle at ₹300 per share mark. On breaching this ₹300 resistance, IREDA share price may soon touch the ₹350 mark. So, those who have IREDA shares in their portfolio are advised to hold the PSU stock, maintaining a stop loss at ₹250.”
For new investors considering IREDA shares, Bagadia advises a cautious approach. He suggests waiting for the stock to either break above ₹300 or for a potential retracement from its Friday close of ₹284. If the stock price falls to around ₹265 to ₹260, this could present a ‘bottom fishing opportunity ‘. This term refers to the strategy of buying stocks when they are at their lowest prices, with the expectation that they will rebound. Investors should maintain a stop loss at ₹250 to limit potential losses.
