IREDA Share Price Soars to Record High, Analysts Bullish on Growth Prospects
Indian Renewable Energy Development Agency (IREDA) shares have been on a remarkable run, hitting a fresh all-time high of ₹310 on July 15, 2024. The stock has gained over 160% year-to-date, making it one of the best-performing stocks in the renewable energy sector.
The recent surge in IREDA’s share price can be attributed to the company’s strong financial performance and positive developments in the renewable energy sector. In the first quarter of the current fiscal year, IREDA reported a 32.11% year-on-year increase in standalone net sales to ₹1,510.28 crore.
Analysts are bullish on IREDA’s growth prospects, with many issuing positive price targets for the stock. Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, believes that the stock has the potential to retest the ₹310 level if it can sustain above the ₹280 zone.
Ganesh Dongre, Senior Manager – Technical Research Analyst at Anand Rathi Shares and Stock Brokers, suggests that traders consider buying IREDA on dips, with a closing stop loss set at ₹240 and a target price of ₹295.
The company’s recent announcement of an equity investment of up to 10% in GMR Upper Karnali Hydro Power Ltd and Karnali Transmission Company Pvt Ltd for a 900 MW hydroelectric power project in Nepal has also caught the attention of investors.
Despite the positive news, IREDA shares experienced a decline yesterday, ending a four-day record run. The stock fell by 6.06%, closing at ₹272.25, which represents a 12.18% drop from its all-time high.
However, analysts believe that the stock is still trading well above its 21-, 50-, and 100-day exponential moving averages (DEMA), suggesting a potential reversion to the mean. They advise traders to adopt a wait-and-watch approach until the stock tests the ₹232-245 range before considering long positions.
IREDA, a Mini Ratna (Category – I) government enterprise, has been actively promoting, developing, and extending financial assistance for new and renewable energy projects, as well as energy efficiency and conservation projects for over 36 years.
The company’s strong performance and growth prospects have caught the attention of investors, and many are optimistic about the stock’s future. As the renewable energy sector continues to grow, IREDA is well-positioned to capitalize on the opportunities and deliver strong returns to its shareholders.
