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IREDA, the Indian Renewable Energy Development Agency, has made significant strides in the Indian stock market with the announcement of its promising Q1 results for 2024. The company reported a 30 percent Year-over-Year increase in Profit After Tax (PAT) and a 32 percent rise in operational revenue, setting a positive tone for the ongoing earnings season. Experts in the stock market are optimistic about IREDA’s future performance, attributing the robust quarterly numbers to the company’s sound financial and business position.
The Stock market analysts anticipate that IREDA will benefit from the Production Linked Incentive (PLI) scheme, a subsidy that the Union Finance Minister Nirmala Sitharaman might announce in the upcoming Union Budget 2024. This scheme is aimed at boosting the manufacturing sector, especially renewable energy companies like IREDA. Analysts predict a significant upside in IREDA’s share price in the near future, with a target of ₹350 per share.
Avinash Gorakshkar, the Head of Research at Profitmart Securities, highlighted IREDA’s performance in the Q1 2024 results, stating that the company recorded a strong PAT of ₹383.69 crore compared to ₹294.58 crore in the same period last year, indicating a 30 percent YoY growth. Additionally, the company saw a 32 percent YoY increase in revenue from operations in the June 2024 quarter. With a 386 percent YoY surge in sanctioned loans, IREDA has positioned itself as a key player in the banking and financial sector.
Sumeet Bagadia, the Executive Director at Choice Broking, expressed confidence in IREDA’s share price outlook, noting a positive chart pattern for the stock. Bagadia advised existing shareholders to maintain their positions, setting a target price of ₹350. For potential investors, he recommended a cautious approach, suggesting a wait-and-see strategy to either breach the ₹300 resistance or observe a potential retracement from the current levels.
With IREDA’s stock hitting all-time highs and witnessing increased investor interest, the company’s financial performance and strategic initiatives have garnered attention from market participants. As the renewable energy sector continues to expand, IREDA’s role in financing green energy projects and contributing to India’s clean energy targets remains pivotal. Investors and analysts alike are closely monitoring IREDA’s trajectory, expecting further growth and value creation in the coming quarters.
