Why IREDA Shares Gained Over 18% So Far This Month? Explained

IREDA shares: Ahead of its board meeting on borrowing plans, shares of the government-backed NBFC are on investors' radar. Indian Renewable Energy Development Agency (IREDA) stocks plummeted over 35% since this year started, following the broader market correction. However, March brought a much-needed sigh of relief for investors, as the stock climbed over 18%.

The broader optimism came after RBI announced adjustments in the Priority Sector Lending (PSL) framework, expanding loan classifications falling under the renewable energy segment. Among the key changes, bank loans of up to Rs 35 crore for renewable energy power generators and public utilities will now be classified as PSL.

Plus, the borrowing limit for renewable energy projects has been increased to Rs 10 lakh per borrower, for individual households.

At 11:00 am, the shares of IREDA were trading at Rs 171.85 price level, up by over 1% on the National Stock Exchange.

The board meeting is scheduled for today, March 25 to discuss the borrowing plan for the fiscal year ahead. "In compliance of Regulation 29 & 50(1) of SEBI (Listing and Disclosure Requirements) Regulations 2015, this is to inform that Board meeting of Indian Renewable Energy Development Agency Limited will be held on Tuesday, March 25, 2025, inter-alia, to consider the matter w.r.t. Borrowing Plan for the FY 2025-26," the company stated in an exchange filing.

IREDA Stock Performance

So far this month, the stock has largely remained in the bullish territory, up by over 16.62% on the bourses. In the last quarter, the company's sanctioned loans more than doubled compared to last year. Meanwhile, the outstanding loan book surged 36% to Rs 69,000 crore.

Technically, the stock has corrected nearly 50% from its recent highs. However, over the past two trading sessions, it has shown resilience and signs of a trend reversal, Geojit Financials stated in a note.  

"The momentum indicator RSI has rebounded from oversold levels and is currently positioned at 42, while the Moving Average Convergence Divergence (MACD) has turned positive, indicating an improvement in momentum, which could support a short-term price rebound," the brokerage firm added. The brokerage firm has set a target price of Rs 196 from the current market level.