Shares of Indian Renewable Energy Development Agency Ltd (IREDA) continued their record run in Friday's trading session. The stock jumped 7.41 per cent to hit an all-time high of Rs 304.60. At this price, the multibagger scrip has ascended by over 190 per cent on a year-to-date (YTD) basis.
The renewable energy PSU is scheduled to announce its earnings for the June 2024 quarter (Q1 FY25) later in the day. Domestic brokerage Phillip Capital expected IREDA to report a net interest income of Rs 501.8 crore, up 40.8 per cent on a year-on-year (YoY) basis and 12 per cent sequentially.
"IREDA has seen a sharp move in two consecutive sessions with the overall structure still looking positive," Aditya Agarwal, Head Derivatives & Technical at Sanctum Wealth, told Business Today TV.
"With that being said, the risk-reward ratio is not in favour of buyers at current levels for a short-term perspective. Traders can considering buying the stock around Rs 260 with a stop loss of Rs 230. Expected targets will be Rs 320-330 levels," Agarwal added.
IREDA has been in focus after getting the 'Navratna' status, said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities. "The focus on renewable energy sector is still going up and IREDA is one of the key beneficiaries. The stock has multiplied from its IPO price. Investors with a medium- to short-term view need to have a trailing stop loss. For the long term, one can hold this stock with upcoming results in focus. The stock is in the momentum zone and traders should maintain a strict stop loss. It is fairly valued and can still gain another 5 per cent," Bathini stated.
"Foreign portfolio investors (FPIs) doubled their stake in IREDA during the June quarter, holding a 2.7 per cent stake compared to a 1.36 per cent stake in the previous quarter," said Amit Goel, Co-Founder and Chief Global Strategist at Pace 360.
Technically, the counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-day and 150-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 85.68. A level below 30 is defined as oversold while a value above 70 is considered overbought.
"The stock is observing buying momentum in the overbought category of its RSI, implying positive strength in uncharted territories," said Avdhut Bagkar, Derivatives & Technical Analyst at StoxBox.
The counter saw heavy trading volume on BSE today as around 1.83 crore shares changed hands today on BSE at the time of writing this story. The figure was higher than the two-week average volume of 86.64 lakh shares. Turnover on the counter came at Rs 538.05 crore, commanding a market capitalisation (m-cap) of Rs 78,267.71 crore. There were 10,56,332 sell orders against buy orders of 3,92,699 shares.
IREDA is under the administrative controls of the Ministry of New and Renewable Energy. As of June 2024, the government held a 75 per cent stake in it.
The organisation offers a comprehensive array of financial products (fund- and non-fund-based) associated services, from project inception to post-completion, for renewable energy projects and related activities like equipment manufacturing and transmission.