Shares of Indian Renewable Energy Development Agency Ltd (IREDA) zoomed over 9 percent in morning deals on July 15 to touch a fresh record high of Rs 310 on the National Stock Exchange (NSE).
At 9:56 am, IREDA shares were trading over 4 percent higher at Rs 297.90 on NSE. So far this year, the stock nearly tripled investors' money as it has surged around 184 percent, beating benchmark Nifty's returns of nearly 13 percent during this period.
The spike comes after the PSU said its profit after tax (PAT) climbed 30 percent on-year to Rs 384 crore in the fiscal first quarter (Q1FY25) compared with Rs 295 crore in the corresponding quarter of last year.
The state-run company's revenue from operations grew 32 percent YoY to Rs 1,510 crore from Rs 1,143 crore in the same quarter last year. IREDA said its outstanding loan book stood at Rs 63,207 crore in the June quarter as against Rs 47,207 crore in the year-ago quarter, up 34 percent on-year.
Since the multi bagger stock was listed on exchanges last year in November, it has skyrocketed to around 396 percent, almost quadrupling investors' money.
Analysts are optimistic about IREDA stock's future performance, given the company's robust quarterly numbers. They anticipate that the power financier will benefit from the subsidy under the government's Production Linked Incentive (PLI) scheme.
This scheme, which the Union Finance Minister Nirmala Sitharaman is expected to announce in the upcoming Union Budget, is designed to boost the manufacturing sector, including renewable energy companies like IREDA.
IREDA's gross non-performing assets (NPA) improved in the June quarter to Rs 1,385 crore, which was 2.19 percent in percentage terms. This was an improvement over 2.36 percent in March and 3.08 percent in the year-ago quarter. June was the fourth straight quarter of asset quality improvement for IREDA.
Should you buy IREDA stock?
"Given the government’s focus on the renewable sector, we remain positive on long-term growth prospects which will aid long-term sustained growth in AUM. Thus, we assign a Buy rating on the stock," ICICIdirect said in a recent note.
Technical stock call
“IREDA share price is looking positive on the chart pattern. The stock is facing a minor hurdle at Rs 300 per share mark. On breaching this Rs 300 resistance, IREDA share price may soon touch the Rs 350 mark. So, those who have IREDA shares in their portfolio are advised to hold the PSU stock, maintaining a stop loss at Rs 250," said Sumeet Bagadia, Executive Director at Choice Broking.
New investors, however, should take a cautious approach and wait for the stock to either break above Rs 300 or for a potential retracement from its Friday close of Rs 284. "If the stock price falls to around Rs 260, this could present a 'bottom fishing opportunity," Bagadia said, adding that investors should maintain a stop loss at Rs 250 to limit potential losses.
0 Comment