IREDA Shares Gain After This Brokerage Sees 22% Upside

Shares of IREDA gained on Tuesday after ICICI Direct maintained a bullish call on the stock and see a 22% upside.

Brokerage Views: ICICI Direct maintained “buy” rating on the stock with a target price of ₹330 as it remained positive on the company’s prospects due to the government’s focus on the renewable energy sector. This will aid the long-term sustained growth with Assets Under Management of the company.

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The brokerage expect the company’s business growth to be healthy at 25-30% compound annual growth rate in FY24-30. India being the third largest producer and second largest user of energy globally. The government has a target for increasing renewable capacity to 500 giga watt by FY30. This needs an investment of ₹24.43 lakh crore and IREDA being a specialised power financiers is expected to play a major role in funding renewable projects.

IREDA in its Q1 results reported a 30% year-over-year increase in net profit to ₹383 crore. Revenue grew 32% to ₹1,501 crore. Net interest income, a key profitability metric increased 37.6% to ₹508 crore.

Price Action: Shares of IREDA was up 2.68% at ₹277.08 on Tuesday morning.

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