Railway-related stocks in India experienced a significant surge, with companies such as RVNL, IRFC, IRCON, and IREDA reaching new highs. This upward trend is attributed to the anticipation of higher government allocations for Indian Railways in the forthcoming Budget 2024. Additionally, IREDA, the Indian Renewable Energy Development Agency, witnessed strong buying interest ahead of its Q3 results, with experts predicting a healthy growth in the company’s top line. Here is a preview of IREDA’s Q3 results and the outlook for railway-related stocks.
Rail Stocks Soar to New Highs: Expectations Ahead of Budget:
Railway-related companies, including RVNL, IRFC, IRCON, RailTel, and IRCTC, experienced significant surges in their stock prices, reaching new highs. Investors are optimistic about the upcoming Budget 2024, which is expected to allocate higher funds to the Indian Railways. In the current month alone, these stocks have surged by up to 75%. The positive sentiment surrounding railway-related companies has been building over the past few months, with stocks witnessing substantial gains.
IREDA, a government-owned entity promoting renewable energy development in India, saw its share price reach a lifetime high ahead of its Q3 results announcement. The stock opened at ₹141.40 on the BSE and quickly climbed to an intraday high of ₹145.80. This surge can be attributed to the market’s expectations of healthy top-line growth during the October to December 2023 quarter. Investors are closely monitoring the Q3 results to assess the company’s performance.
Experts’ Outlook on IREDA’s Q3 Results:
Experts believe that IREDA’s Q3 results will reflect a stable average cost of funding and net interest margins (NIMs). The company’s strong financial flexibility and co-financing deals are expected to enable it to mobilize funds at competitive rates. Additionally, increased consumption in the energy sector and plans for new capital expenditure in the power sector are anticipated to contribute to healthy growth in IREDA’s top line during Q3FY24.
Technical analysts suggest further upside potential for IREDA shares. The stock recently broke out above the resistance zone at ₹125 and is expected to continue its upward momentum. The next price targets for IREDA shares are projected at ₹156 and ₹172, with a stop loss set at ₹125. However, investors should exercise caution and seek advice from certified experts before making investment decisions.
Investors expect higher government allocations for Indian Railways in the upcoming Budget 2024, leading to a surge in railway-related stocks.
Strong buying interest and market expectations of healthy top-line growth in Q3FY24 have contributed to IREDA’s share price reaching a lifetime high.
What can we expect from IREDA’s Q3 results?
Experts anticipate stable average cost of funding and net interest margins, with healthy growth in the company’s top line due to increased consumption in the energy sector.
Technical analysts suggest that IREDA shares have further upside potential, with price targets projected at ₹156 and ₹172.
What precautions should investors take before investing in these stocks?
Investors should seek advice from certified experts and conduct thorough research before making investment decisions.