IREDA shares hit 5% upper circuit after Q4 business update

For the quarter ended March 31, IREDA sanctioned loans of Rs 23,796 crore, clocking an on-year growth of 101.7% from Rs 11,797 crore from the same quarter a year back.

Meanwhile, loan disbursements for the quarter stood at Rs 12,869 crore, up 14% from Rs 11,291 crore from Q4FY23.

Earlier, last month on March 28, the IREDA board of directors approved a proposal of Rs 24,200 crore borrowing for 2024-25. It included raising through bonds, perpetual debt instruments (PDI), term loans, commercial papers, and external commercial borrowings (ECB).

IREDA is a multibagger stock as from its IPO listing price of Rs 50 per share, rallied nearly 200%. Meanwhile, the stock has surged 368% from its issue price of Rs 32 per share. Despite these impressive gains, the stock is currently trading 30% lower than its all-time high of Rs 215, reached on February 6, 2024. The stock went public on November 29, 2023.

With Tuesday's rally, IREDA's market cap stood at Rs 40,249 crore mark.

In Q3 FY24, IREDA reported a 67.15% year-on-year rise in its net profit to Rs 335.54 crore. The company had reported a profit of Rs 200.75 crore in the year-ago period.

Its revenue from operations stood at Rs 1252.85 crore during the quarter ended December from Rs 868.67 crore in Q3FY23, a YoY jump of nearly 44.22%.

As per Trendlyne data, the average target price of the stock is Rs 80, which shows a downside of 47% from the current market prices. The consensus recommendation from one analyst for the stock is a 'Strong Sell'.

In terms of technicals, the relative strength index (RSI) of the stock stands at 50.1, signaling it's neither trading in the overbought nor in the oversold territory. MACD is at -6.0, which is below its signal and center line, this is a strong bearish indicator.

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