IREDA share price jumps another 8.4% to reach 3-week high; rebounds 21% in March so far

IREDA, India’s leading green financing NBFC, saw its share price rise for the second consecutive trading session on Monday, March 24, jumping 8.4% to hit a 3-week high of ₹167.90 per share on the back of a strong spike in volumes.

The stock ended last week with a gain of nearly 11%, marking its biggest weekly gain of the year so far. The state-owned company last week launched its first-ever perpetual bonds to raise ₹1,247 crore at an annual coupon rate of 8.40%, aiming to optimize its capital structure while leveraging favorable market conditions.

In the same exchange filing, the company also announced that it had received a refund of ₹24.48 crore on March 19, 2025, from the Income Tax Department as partial relief granted by the Commissioner of Income Tax (Appeals) for Assessment Year (AY) 2011-12, related to certain disallowances. It further stated that a refund of approximately ₹195 crore is still under process for similar relief granted by CIT (Appeals) for AYs 2010-11, 2012-13, 2013-14, and 2015-16 to 2018-19, which is yet to be received.

Meanwhile, the company informed the exchange that a board meeting will be held on Tuesday, March 25, 2025, to consider the borrowing plan for FY 2025-26.

Stock recovers 21% from March lows, still 46% below from recent peak

Barring March, the company's shares witnessed heightened volatility over the last seven months, losing 42% of their value as multiple challenges weighed on its performance, prompting caution in the market. Despite the healthy recovery in March, it is still down 46% from its recent peak of ₹310 apiece.

IREDA's stock experienced a remarkable surge post-listing, rising nearly 10 times from its IPO price of ₹32 to ₹310 in July 2024, which pushed valuations to unsustainable levels. Additionally, the company was impacted by the Reserve Bank of India's (RBI) decision to deny its request to make an equity investment in the 900 MW Upper Karnali Hydroelectric Power Project in Nepal.

Further, the company's weak financial performance in the December quarter dented investor sentiment and it's exposure to Gensol Engineering, a solar plant construction company, has also emerged as a growing concern.

Moreover, the broader renewable energy industry faced headwinds in early 2025, particularly due to concerns over potential U.S. tariffs under President Donald Trump's administration.

IREDA is a non-banking financial company (NBFC) established in 1987 to offer innovative financing solutions for renewable energy (RE) projects, energy efficiency, conservation, and environmental technologies. As a wholly owned enterprise of the Government of India (GoI), it operates under the Ministry of New and Renewable Energy (MNRE).

Geojit projects stock to reach ₹196

Geojit Investments Limited, in its latest report, said that the stock has corrected sharply from its recent highs. However, over the past two trading sessions, it has shown resilience and signs of a trend reversal.

The momentum indicator RSI has rebounded from oversold levels and is currently positioned at 42, while the MACD has turned positive, indicating an improvement in momentum, which could support a short-term price rebound.

Geojit stated that a sustained breakout above the 21-DMA could further propel the price toward the ₹178– ₹182 range in the coming sessions and expects it to reach ₹196 per share. On the flip side, it has set ₹139 per share as the stop-loss level.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.