Why is IREDA share price skyrocketing? — explained

IREDA share price: Shares of Indian Renewable Energy Development Agency (IREDA) Limited have been in an uptrend for the last one week. The PSU stock hit the upper circuit on three out of the last five straight sessions. IREDA share price hit the upper circuit on Monday, Tuesday, and Wednesday last week while on the following session i.e. on Thursday, the PSU stock managed to end higher.

IREDA share price opened upside on Friday and went on to touch an intraday high of ₹181.15 apiece on NSE, recording around a 14 percent rise against its Thursday's close price of ₹158.35 apiece.

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According to stock market experts, IREDA's share price has been rising after the announcement of a strong business update for the recently ended financial year 2023-24. They said that the state-owned company recently announced the raising of funds to the tune of 24,200 crore as well. Giving a 'buy and hold' tag to the PSU stock, they said that IREDA share price may touch ₹200 apiece level in the near term.

Triggers for IREDA share price

On the reasons that are fueling IREDA share price these days, Avinash Gorakshkar, Head of Research at Profitmart Securities said, "IREDA share price witnessed some buying after it announced fundraising to the tune of ₹24,200 crore through borrowing. However, the recent rally in the scrip can be attributed to the strong business performance of the company in FY24. The PSU company has reported a record rise in its loan business. Hence, the market is expecting strong Q4 results 2024 from IREDA."

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IREDA share price target

Expecting more upside in IREDA share price, Sumeet Bagadia, Executive Director at Choice Broking said, "IREDA share price is looking positive on the chart pattern. It has made a strong base at ₹160 apiece level whereas it is facing resistance at ₹200 per share mark. So, those who have IREDA shares in stock portfolio, are advised to maintain a trailing stop-loss at ₹160 for the short-term target of ₹200 per share."

IREDA news

In the financial year 2023–2024, the Indian PSU company recorded the highest-ever loan sanctioned amount at ₹37,354 crore and the state-owned company's loan disbursed in this period stood at ₹25,089 crore. At ₹59,650 crore, IREDA's Loan Book has experienced a record rise of 26.71 percent, the company claimed in an exchange filing on 1st April 2024.

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