IREDA Share: This is why the decline in IREDA shares is not stopping, it has fallen by -40% in no time, what to do next

News Topical, Digital Desk : The decline in IREDA's stock is not stopping. Indian Renewable Energy Development Agency (IREDA) has reported weak profits in the June quarter. The company's net profit fell by 35.7% to ₹ 247 crores, while it was higher in the same quarter last year. However, revenue increased by 28.9% to ₹ 1,947 crores. The company's stock has fallen by -9 percent in a month and -32 percent from January to August. At the same time, the stock has fallen by -41 percent in a year. 

IREDA's Q1 results: Profit decreased by 35.7%, NPA increased; Gensol has a huge debt stuck. Net profit: ₹247 crore, 35.7% YoY i.e. decline in terms of year on year. Income ₹1,947 crore, 28.9% YoY i.e. increase in year on year. Gross NPA: has come down to 4.13% (previous quarter 2.45%). Net NPA: has become 2.06% (previous quarter 1.35%). The real cause of tension is that the total expenditure increased by 60% YoY, which has increased the pressure on the margin. Rising costs impacted profitability.The account of a large borrower shifted from Stage II to NPA following an order of the Andhra Pradesh High Court, valued at Rs 783 crore. Gensol Engineering Ltd. and Gensol EV Lease Pvt Ltd. are borrowers of IREDA.IREDA has a loan exposure of Rs 470 crore to Gensol Engineering, which is now bankrupt.IREDA is trying to recover Rs 729 crore from Gensol Engineering and its EV leasing arm. 

Signal for investors- Although good growth has been seen in revenue, challenges like sharp increase in expenses, surge in NPA and default on large loans can put pressure on the company's near-future financial health. The progress of recovery in Gensol case will be important for investors. IREDA share price target: It has been asked to focus on buy-on-dips strategy. According to Choice Broking- A return of bullishness is possible in IREDA stock. He says that this Navratna PSU stock has strong support at ₹ 150 and ₹ 130, so investors should adopt a buy-on-dips strategy while staying above ₹ 150. Technical View:- Support Level: ₹ 150 (Crucial), ₹ 130 (Strict Stop Loss) and Target: ₹ 185. But make fresh purchases while keeping a strict stop loss of ₹ 130. Possibility of reversal if it stays above ₹ 150. Disclaimer: The advice or views given on CNBC TV18 Hindi/CNBC Awaaz are the personal views of the expert/brokerage firm. The website or management is not responsible for this. Before investing, you must take the advice of your financial advisor i.e. certified expert.

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