Indian Renewable Energy Development Agency (IREDA) witnessed a significant surge in its share price following the attainment of ‘Navratna status’ from the Department of Public Enterprises.
Share Price Movement
- IREDA’s share price opened at ₹186.20 on the BSE.
- It reached an intraday high of ₹191.50 and an intraday low of ₹182.05.
Analyst’s Perspective
Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, noted a gap-up opening in IREDA’s share price. He suggests that sustaining above the key hurdle of ₹180 could lead to a strong upside, possibly towards ₹210, with support at ₹170.
Impact of ‘Navratna’ Classification
- Market analysts view the ‘Navratna’ status as a significant milestone for IREDA.
- This classification allows the company to expedite its goals and operations without the need for government clearance, particularly for Joint Ventures (JVs) in India and abroad.
Financial Performance
- IREDA reported a 33% rise in net profit to ₹337.37 crore for the quarter ending in March 2024, attributed to increased income.
- Quarterly revenue surged from ₹1,036.31 crore to ₹1,391.63 crore.
- Expenses for the same period rose from ₹747.93 crore to ₹911.96 crore.
- The company achieved an all-time high annual profit after tax (PAT) of ₹1,252.23 crore, marking a 44.83% increase from the previous fiscal year.
Performance Since Debut
- Since its debut in November, IREDA’s share price has witnessed a remarkable gain of over 480%.
- The company’s initial listing price on NSE and BSE was ₹50 per share, significantly higher than the issue price of ₹32.
Multiple Choice Questions (MCQs):
- What triggered the surge in IREDA’s share price?
- a) Announcement of increased dividends
- b) Attainment of ‘Navratna status’
- c) Introduction of a new product line
- d) Merger with a competitor
- According to Rajesh Bhosale, what level in the share price chart is crucial for IREDA’s potential upside?
- a) ₹170
- b) ₹180
- c) ₹191.50
- d) ₹210
- What is the significance of ‘Navratna’ classification for IREDA?
- a) It allows the company to operate without any government oversight.
- b) It enables quicker execution of goals and operations without requiring government clearance for certain activities.
- c) It exempts the company from paying taxes.
- d) It grants exclusive rights to IREDA for renewable energy projects.