Hero Image

IREDA's share price surges over 10% after acquiring 'Navratna' status

IREDA's share price surges over 10% after acquiring 'Navratna' status
29 Apr 2024

The Indian Renewable Energy Development Agency (IREDA) experienced a significant surge in its share price today, with an increase of over 10%.

This rise followed the company's acquisition of the prestigious 'Navratna' status from the Department of Public Enterprises.

The recognition is expected to grant IREDA greater autonomy and efficiency, a development that market experts view as a substantial advancement for the company.

IREDA share price sees gap-up opening
Market analysis

IREDA's share price opened at ₹186.20 on the BSE, reaching an intraday high of ₹191.50.

Equity Technical and Derivative Analyst at Angel One, Rajesh Bhosale, noted that the IREDA share price has seen a gap-up opening and is now sustaining above the previous key hurdle of ₹180.

Bhosale suggested that a close above ₹180 could trigger a strong upside in the near term, possibly toward ₹210, with support at ₹170.

IREDA's impressive Q4 results for 2024 led to the upgrade
Autonomy granted

The 'Navratna' status empowers IREDA to expedite its projects and plans without needing government approval for several joint ventures in India and abroad.

This development follows IREDA's impressive Q4 results for 2024, where it reported a 33% rise in net profit to ₹337 crore, bolstered by increased income.

The company's overall revenue also increased from ₹1,036.31 crore to ₹1,391.63 crore in Q4 of FY24.

'Navratna' status will speed up IREDA's business operations
Expert opinions

"A PSU company requires certain approvals from the central government for executing and implementing its projects... But after the 'Navratna' status, it won't require such approvals on certain JVs and projects," said Sandeep Pandey, Founder of Basav Capital.

He anticipates this will speed up the company's business activities in the coming quarters.

Shreyansh V Shah, a Research Analyst at StoxBox, also predicts a surge in IREDA's business activities following the 'Navratna' tag.