State-run Indian Renewable Energy Development Agency (IREDA) Ltd on Thursday posted a net profit of Rs 387.75 crore for the quarter ended on September 30, 2024 (Q2 FY25), up 36.18 per cent over Rs 284.73 crore in the year-ago period. During the quarter under review, revenue from operations came at Rs 1,629.55 crore, a rise of 38.49 per cent against Rs l,176.63 crore reported in Q2 FY24.
The renewables lender's net interest income (NII) was up 52.31 per cent at Rs 546.8 crore against Rs 359 crore reported a year earlier.
IREDA recently mentioned that the government is planning to offload a 7 per cent stake in the company through an institutional share sale.
Technically, the counter traded higher than the 5-day, 10-, 20-, 30-, 100-, 150-day and 200-day simple moving averages (SMAs) but lower than the 50-day SMA. The scrip's 14-day relative strength index (RSI) came at 41.84. A level below 30 is defined as oversold while a value above 70 is considered overbought.
Bourses BSE and NSE have put the securities of IREDA under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.
"The stock has witnessed a gradual slide after it peaked out near the Rs 310 zone. After making a low of 206, it has recovered with a decent pullback to move past Rs 225-232 levels. One can anticipate a further rise in the coming days," said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.
Traders can buy the stock for an upside target of Rs 275 with a stop loss of Rs 215, Koothupalakkal added.
The Q2 FY25 results were announced after market hours today. Earlier in the day, IREDA shares rose 1.12 per cent to settle at Rs 233.75.
As of June 2024, the Centre held a 75 per cent stake in PSU.