Synopsis: IREDA shares hit a new lifetime high after impressive Q1 2024 results, with expectations of further gains driven by potential subsidies in the upcoming budget. Experts suggest holding the stock with a trailing stop loss or buying at current levels for near-term targets.
IREDA share price today opened at Rs.300 apiece and touched an intraday high of Rs.310 per share on the NSE within a few minutes of the opening bell.
Stock Market Performance
After better-than-expected Q1 results for 2024 last week, shares of Indian Renewable Energy Development Agency (IREDA) Limited witnessed strong buying during the early morning session on Monday. IREDA share price today opened at Rs.300 apiece on NSE and touched an intraday high of Rs.310 per share within a few minutes of the opening bell. While climbing to this intraday high, IREDA share price today also touched a new lifetime high.
Market Sentiment
According to stock market experts, IREDA share price is on a meteoric rise following the announcement of better-than-expected Q1 results for 2024. The market is abuzz with anticipation of the benefits the company is expected to receive from the subsidy for renewable energy companies under the Production Linked Incentive (PLI) Scheme. This sentiment is likely to be reflected in the 2024 budget. As a result, the PSU stock is expected to remain a hot topic until the Indian Finance Minister Nirmala Sitharaman presents the Union Budget 2024 in parliament.
Financial Performance
Connecting IREDA shares' rally with its Q1 results for 2024, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, "IREDA has reported PAT at Rs.383.69 crore as against Rs.294.58 crore in the corresponding period of the previous financial year, which means the state-owned company has registered around a 30% YoY rise in PAT. Similarly, the company has registered over 32% YoY revenue from operations in the June 2024 quarter. The state-owned NBFC reported a 386% YoY rise on the sanctioned loan front."
Future Outlook
The Profitmart Securities expert went on to add that 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 for 2024.
Expert Recommendations
"IREDA share price has been on an uptrend for long, and some consolidation is expected before any strong rally. So, my suggestion to IREDA shareholders is to hold the scrip with a trailing stop loss of Rs.270. Fresh buyers can buy the scrip around Rs.280 to Rs.285, maintaining a stop loss at Rs.270 for the near-term target of Rs.330 and Rs.350," said Sumeet Bagadia, Executive Director at Choice Broking.
Disclaimer
The views and recommendations made above are those of individual analysts or broking companies. We advise investors to check with certified experts before making any investment decisions.
