Last week, when Indian Renewable Energy and Development Authority (IREDA) Limited released its June quarter results, there was speculation that its stock might see a surge when the market opens on Monday. Because the company’s results were better. Exactly the same thing happened today. Heavy buying was seen during the morning session on Monday. Today, the IREDA share price opened at Rs 300 per share on NSE and hit an intraday high of Rs 310 per share within minutes of the opening bell. In addition to surging above this intraday high, the IREDA share price also hit a new all-time high today.
This is why the stock went up.
According to stock market experts, there has been a huge jump in the share price of IREDA after the announcement of better than expected results for the first quarter of 2024. There is talk in the market that the company is expected to benefit from the subsidy for renewable energy companies under the PLI scheme. Perhaps this is the reason why the PSU stock is surging even before Finance Minister Nirmala Sitharaman presents the Union Budget 2024 in Parliament.
Linking the surge in IREDA stock to its Q1 FY24 results, Avinash Gorakshkar, Head of Research, Profitmart Securities, said IREDA reported a PAT of Rs 383.69 crore as against Rs 294.58 crore in the same period last fiscal, meaning the government-owned firm is said to have registered an annual growth of around 30 per cent in PAT. Similarly, the company registered over 32 per cent YoY operating income in the June quarter of FY24. The state-owned NBFC registered an annual growth of 386 per cent on the lending front.
Do you expect further growth?
The Profitmart Securities expert further said that the market expects subsidies for renewable energy companies under the PLI scheme in Budget 2024. If Finance Minister Sitharaman announces this subsidy, IREDA is likely to benefit from the move, which is likely to trigger a sharp rise in IREDA share price immediately after the strong Q1 FY24 results.
