The Indian Renewable Energy Development Agency (IREDA) has made waves in the Indian stock market by being the first PSU company to announce its promising Q1 results for 2024. With a 30 percent year-on-year rise in PAT and a 32 percent increase in operational revenue, IREDA has set a positive tone for the current earnings season, particularly in the banking and financial sectors. As Dalal Street gears up for trading on Monday, all eyes will be on the IREDA share price, which is expected to attract the attention of bullish investors.

Experts in the stock market are optimistic about IREDA’s future performance, pointing to the company’s strong quarterly numbers as a reflection of its solid financial and business standing. They believe that IREDA will benefit from the subsidies provided under the Production Linked Incentive (PLI) scheme. This scheme, which may be unveiled by Union Finance Minister Nirmala Sitharaman in the upcoming Union Budget 2024, aims to boost the manufacturing sector, including companies in the renewable energy space like IREDA. Analysts anticipate a significant uptick in IREDA’s share price in the near term, with a target of ₹350 per share.

Review of IREDA Q1 Results 2024

Upon reviewing the Q1 results for 2024 released by IREDA on Friday, Avinash Gorakshkar, Head of Research at Profitmart Securities, commented, “IREDA has reported a PAT of ₹383.69 crore compared to ₹294.58 crore in the same period of the previous fiscal year, indicating a 30 percent year-on-year increase in PAT. Additionally, the company has seen a more than 32 percent year-on-year growth in revenue from operations in the quarter ending June 2024. The state-owned NBFC has witnessed a 386 percent year-on-year surge in sanctioned loans.”

Gorakshkar highlighted that IREDA became the first banking and financial company in India to unveil its Q1 results for 2024 in the current earnings season. This move signals the company’s proactive approach in sharing its quarterly performance ahead of the Union Budget 2024. With expectations of subsidies for renewable energy firms under the PLI Scheme in the 2024 budget, a potential announcement by FM Sitharaman could see IREDA reaping the benefits, leading to a sharp uptrend in its share price post-robust Q1 results for 2024.

Target for IREDA Share Price

Foreseeing further upside in the IREDA share price, Sumeet Bagadia, Executive Director at Choice Broking, stated, “The chart pattern for IREDA’s share price looks positive. The stock is currently facing minor resistance at ₹300 per share. Upon breaching this ₹300 level, the IREDA share price could potentially reach ₹350. Therefore, investors holding IREDA shares are advised to retain their position in the PSU stock with a stop loss at ₹250.

For new investors eyeing IREDA shares, Bagadia recommended a cautious approach. He suggests waiting for the stock to either surpass the ₹300 mark or witness a possible retracement from its closing price of ₹284 on Friday. Should the stock price decline to around ₹265 to ₹260, this could present a ‘bottom fishing opportunity’, a strategy involving buying stocks at their lowest prices in anticipation of a rebound. Investors are advised to maintain a stop loss at ₹250 to manage potential losses.