IREDA share price: Experts see big upside in PSU stock after central government's 'Navratna' accord. Should you buy?
IREDA share price: Shares of Indian Renewable Energy Development Agency (IREDA) Ltd will be in focus on Monday when the Indian stock market reopens after the weekend close. The reason for this PSU stock to remain on focus is the latest 'Navratna status' being accorded to the state-owned company by the Government of India (GoI). The PSU company informed on Friday after the market close that the Department of Public Enterprises (DPE) has accorded 'Navratna status' to the company vide a letter dated 26th April 2024.
According to stock market experts, this is a big development from the IREDA's perspective as the 'Navratna' status would enable the government-owned company to execute its projects and plans at a faster rate. Now, IREDA won't require any government approval on certain JVs in India and overseas. They said that after the strong IREDA's Q4 results 2024, this GoI's accord is a big development for the company and its shares.
They gave a 'portfolio stock' tag to the IREDA shares. On how 'Navratna' status would impact the business of the PSU company, Sandeep Pandey, Founder of Basav Capital said, "A PSU company requires certain approvals from the central government for executing and implementing its projects. It also requires the government's nod to partner with any domestic or international player.
But, after the 'Navratna status accord, it won't require such approvals on certain JVs and projects, which is going to accelerate the company's business activities in the coming quarters. I am expecting a rise in the order book of the company as the company is aggressively foraying into solar and other alternative sources of energy. The 'Nar\vratna' status given by the GoI also signals that the company is going to play a
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