Indian Renewable Energy Development Agency (IREDA) Ltd shares on Monday settled 2.59 per cent lower at Rs 253.55. At this price, the multibagger counter has rallied 142.28 per cent in 2024 so far. With that being said, IREDA's stock has seen a massive uptick from its initial public offering (IPO) price of Rs 32. It was listed on November 29 last year.
Despite the mentioned stellar rally, the scrip has declined 18.21 per cent from its all-time high value of Rs 310, a level seen July 15, 2024.
The renewable energy PSU recently said it would consider a fundraising proposal of up to Rs 4,500 crore. An analyst suggested that the company's valuations are fully priced-in at current levels and investors with a high-risk appetite can only consider adding this stock to their portfolio.
"IREDA has been in a consolidation phase over the last few weeks. Post-IPO, the stock is one of the strong performers. Due to the focus on renewable energy and lending towards renewable projects, the scrip has been gaining momentum. But, valuations are fully priced-in at this point in time. So, one should have a strict trailing stop loss. For a long-term perspective, investors with a high-risk appetite can add IREDA to their portfolio," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
On technical setup, support could be seen at Rs 230 level. And, resistance may be found in the 270-280 range.
"IREDA underwent some correction after its stellar rally from Rs 200 to Rs 310 zone. On the level-specific front, Rs 230 is likely to act as a cushion. On the higher end, a series of resilience could be seen from Rs 270-280, followed by Rs 300 level in the comparable period, said, Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"If we are looking for a short-term perspective, we can see some positive traction. The stock can move towards Rs 275-280-odd levels. Keep stop loss at Rs 252. From a broader view, I'm expecting more of a time-wise correction in this stock. It will continue to consolidate in a zone of Rs 230 on the lower side and Rs 285-290 on the higher side," said Aditya Agarwal, Head of Derivatives & Technical at Sanctum Wealth.
The state-run firm said its profit after tax (PAT) climbed 30 per cent to Rs 384 crore for the June 2024 quarter (Q1 FY25) compared with Rs 295 crore in the corresponding quarter of last year.
In Q1 FY25, revenue from operations grew 32 per cent year-on-year (YoY) to Rs 1,510 crore from Rs 1,143 crore in the same quarter last year. IREDA said its outstanding loan book stood at Rs 63,207 crore in Q1 against Rs 47,207 crore in the year-ago quarter, up 34 per cent.
IREDA is a 'Navratna' PSU 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 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.