IREDA share price dips 5% today as Philip Capital gives ’sell’ tag

IREDA stock witnesses strong selling after Philip Capital predicts heavy correction and maintains 'sell' tag, despite strong Q1FY25 results.

IREDA share price: Shares of Indian Renewable Energy Development Agency (IREDA) Limited witnessed strong selling today (July 16). This comes after the domestic brokerage Philip Capital predicted heavy correction in the stock and gave a 'sell' tag to IREDA.

IREDA share price: Philip Capital expects IREDA’s earnings growth of 18% and 20% in FY25 and FY26.

The share price of the PSU stock today opened with a downside gap at ₹288.70 apiece on the NSE. The stock touched an intraday low of ₹273.15 per share within a few minutes of the stock market opening.

What brokerage Philip Capital said on IREDA share price?

Philip Capital maintained its 'sell' tag on the PSU stock and predicted a deep downside in IREDA shares while saying that IREDA delivered strong Q1FY25 results. IREDA stock has risen for the last four sessions.

"Higher exposure to the private sector and high proportion of the vulnerable portfolio do not provide confidence for low credit costs in the medium term," the brokerage said.

Philip Capital expects IREDA’s earnings growth of 18% and 20% in FY25 and FY26, translating into return on equity of 16% as it said, “While loan growth is high, return ratios are moderate and there is higher exposure to the private segment – which undermines conviction for continued lower credit cost.”

IREDA stock so far

IREDA made its stock market debut towards the end of last year. The stock has risen nearly 10 times in eight months of going public. The stock has already risen 185% so far in 2024. At the current levels, the market capitalisation of IREDA has crossed ₹80,000 crore.