IREDA share price hits lifetime high ahead of Q1 results today. Should you buy as PSU stock jumps 25% in three days?

IREDA share price: The stock price of Indian Renewable Energy Development Agency (IREDA) Limited has been on a significant uptrend for the last three straight sessions. In these three days, IREDA share price has surged from ₹240.53 to ₹303.70 apiece on the NSE, marking a substantial 25 percent rise. This upward trajectory suggests that IREDA shares still have potential ahead of its Q1 results today. Despite opening at ₹282.90 per share mark, the PSU stock quickly gained momentum and reached an intraday high of ₹303.70 per share, a near 5 percent gain. Notably, during this climb, IREDA share price also reached a new lifetime high.

According to stock market experts, the market is expecting robust Q1 results today from the PSU company. With IREDA's focus on funding the RE sector, business growth is expected to remain healthy at around 25-30% CAGR, with market share scheduled at around 29% in incremental financing. They advised a buy-on-dip strategy regarding IREDA shares ahead of the declaration of its Q1 results 2024 on Friday. They said that IREDA's share price has made a strong base at ₹250, and the PSUs tock may touch ₹350 in the near term provided the Q1 results today meet the market expectations.

IREDA news: Q1 results today

According to the information on the BSE website, IREDA has set 12 July 2024 as the date for announcing its Q1 results.

Speaking on the kind of Q1FY25 results that IREDA may deliver, Manish Chowdhury, Head of Research at StoxBox, said, “Given India's commitment to the sustainable development goals (SDGs) and the targets set on renewable energy capacities, IREDA's strategic role as the nodal agency for promoting, developing, and financing renewable energy and energy efficiency (EE) projects in India is significant. IREDA's focus on funding the RE sector, business growth is expected to remain healthy at around 25-30% CAGR, with market share expected at around 29% in incremental financing. In its Q1FY25 business update shared, IREDA had recorded loan sanctions of Rs. 9,136 crores in the June quarter, up 382.62% YoY.”

The StoxBox expert said that the PSU's loan disbursements for the quarter came in at Rs. 5,320 crores, up 67.61% YoY. This further suggests that the company will produce robust numbers.

Budget 2024 in focus

Pointing towards the Union Budget 2024 trigger for IREDA shares, Amit Goel, Co-Founder and chief Global Strategist at Pace 360, said, "In the upcoming budget, we could see a Production-Linked Incentive (PLI) scheme related to the renewable energy sector, including devices such as windmills and solar panels. There will likely be an increased focus on renewable energy to achieve the ambitious goal of sourcing 50% of India's electricity needs from renewable sources by 2030."

IREDA share price target

Asked about the technical outlook of IREDA share price, Sumeet Bagadia, Executive Director at Choice Broking, said, “IREDA shares are looking positive on the chart pattern. The PSU stock has made a strong base at ₹250, and it is facing hurdles at ₹300 and ₹350 on the daily and weekly charts. So, IREDA share price may touch the ₹350 mark in the near term once it breaches the immediate hurdle of ₹300 on a closing basis.”

Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.