IREDA's share price hits lifetime high: What's fueling rally?
The Indian Renewable Energy Development Agency (IREDA) saw its share price open at Rs. 141.40 on the BSE, climbing to an all-time high of Rs. 148.90 during the historic Saturday session. Experts predict that IREDA's average funding cost and net interest margins (NIMs) will remain stable in Q3 FY24, with strong top-line growth expected for the October-December 2023 quarter. If the company meets these expectations, its share price could soon reach the Rs. 172 zone.
IREDA's Q3 results preview by StoxBox
Shreyansh V. Shah, a Research Analyst at StoxBox, shared his thoughts on IREDA's Q3 results. He said, "Given its sovereign ownership, the lender's average cost of funds remains stable and we thus expect NIMs to remain stable in Q3FY23. Additionally, due to its various co-financing deals, the finance arm will be able to mobilize funds at competitive rates." Shah believes increased energy consumption and new capex plans in the power sector will lead to faster bottom-line growth for Q3 FY24.
Here's what Prabhudas Lilladher said
Shiju Koothupalakkal, a Technical Analyst at Prabhudas Lilladher, also anticipates a rise in IREDA shares. He stated, "With the bias overall maintained positive, we expect IREDA to carry on with the upward move for the next targets of Rs. 156 and Rs. 172 levels respectively, keeping the stop loss of Rs. 125." Koothupalakkal notes that after resisting near the Rs. 123 zone, the stock has shown a decent rally, indicating a breakout over the resistance zone of Rs. 125.
A look at IREDA's share prices
On the BSE, IREDA closed at Rs. 123.10 per share yesterday. The company has a market share of Rs. 40,000 crore, and its stock is currently up 20.96%. Meanwhile, on the National Stock Exchange (NSE), IREDA is currently trading at Rs. 148.85 apiece, which is up 20.97% in comparison to yesterday.
