IREDA Share Price Target 2024: 382% YoY jump in loan sanctions in Q1 - Buy PSU stock?
ireda share price target 2024: 382% yoy jump in loan sanctions in q1 - buy psu stock?
IREDA Share Price Target 2024: Shares of Indian Renewable Energy Development Agency Ltd (IREDA) jumped nearly 6 per cent to surpass the 200 level after the PSU said it recorded loan sanctions of Rs 9,136 crore in the June quarter, up 382.62 per cent year-on-year (YoY) over Rs 1,893 crore in the June quarter of last year.
Loan disbursements for the quarter came in at Rs 5,320 crore, up 67.61 per cent over the year-ago's Rs 3,174 crore. The outstanding loan book stood at Rs 63,150 crore for the quarter ended June 30, up 33.77 per cent over the year-ago's Rs 47,207 crore.
IREDA Share Price Today
Shares of IREDA on Monday, July 1, jumped nearly 6 per cent to hit the day's high at Rs 201.82 apiece on NSE. The NBFC stock opened at Rs 200 against its previous closing price of Rs 190.44.
Ag the time of filing this report, IREDA shares traded at Rs 197.24 apiece, up 3.63 per cent against previous close.
During the session so far, it touched an intraday low of Rs 196.25. Around 10:02 AM, 2.07 crore shares changed hands on both BSE and NSE combined.
IREDA Share Price Target 2024
Brokerage firm ICICI Direct is bullish on IREDA and sees a potential upside of up to 26.75 per cent from the current market price.
"India is the third-largest producer and the second-largest consumer of energy globally. The country's power demand has consistently increased, except during FY21 due to the COVID-19 pandemic. By FY27, India's peak electricity demand is expected to reach 277 GW, with an energy requirement of 1908 BU, growing at a CAGR of 4.8% and 4.5% respectively. The CAGR for energy requirement and peak demand from FY27 to FY32 is projected at ~5.3% and 5.7% respectively," ICICI Direct said in its latest report.
The brokerage firm further added, "IREDA has reported healthy growth in AUM at ~30% CAGR in FY21-24 with loan book at ₹ 58,775 crore. With government’s focus on renewable sector amid plan to increase dependence on renewable energy, we expect IREDA to maintain its loan growth at ~30% CAGR over FY24-26E (AUM at ₹ 99,330 crore by FY26E). Management has proposed roadmap to target AUM of ~₹3.5 lakh crore by FY30E to attain Maharatna status, subject to guidelines and approvals."
ICICI Direct has set the target price for IREDA at Rs 250 apiece. The brokerage anticipates the stock to hit this target price within 12 months.
IREDA Share Price History
Shares of IREDA has appreciated by 4 per cent in the last week, and over 10 per cent in the past two weeks. Over the past three months and six months, the green energy stock has delivered over 38 per cent and 88 per cent returns, respectively.
Since its IPO price of Rs 32, the share has rallied over 630 per cent till now.
IREDA Shareholding Pattern
As of March 31, 2024, promoters hold 75 per cent stakes, FII's hold 1.4 per cent, and DII hold 0.9 per cent.
IREDA Company Profile
Incorporated in March 1987, IREDA is India’s largest pure-play green financing NBFC engaged in promoting, developing and extending financial assistance for setting up projects relating to new and renewable sources of energy, energy efficiency & conservation. The company has geographically diversified asset base with term loans outstanding across 23 states and 5 union territories.