IREDA share price hits lifetime high after Q1 results 2024. More steam left?

Stock market today: After better-than-expected Q1 results 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 ₹300 apiece on NSE and touched an intraday high of ₹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.

According to stock market experts, IREDA share price is on a meteoric rise following the announcement of better-than-expected Q1 results 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 PLI Scheme, a sentiment that 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.

Why are IREDA shares skyrocketing?

Connecting IREDA shares' rally with its Q1 results 2024, 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."

The Profitmart Securities expert went on to add that 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

"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 ₹270. Fresh buyers can buy the scrip around ₹280 to ₹285, maintaining a stop loss at ₹270 for the near-term target of ₹330 and ₹350," said Sumeet Bagadia, Executive Director at Choice Broking.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.