Shares of Indian Renewable Energy Development Agency (IREDA) Ltd jumped 5.52 per cent to hit a high of Rs 212.30 in Monday's early trade. The stock cut most of its gains as the session progressed and was last seen trading 0.35 per cent up at Rs 201.90. At this price, the scrip has jumped 65.36 per cent in a year.
The state-run renewable energy financier clocked a 26.8 per cent year-on-year (YoY) rise in its net profit for the December quarter (Q3 FY25). Profit climbed to Rs 425.4 crore in Q3 FY25 compared to Rs 335.5 crore in the same period last year.
IREDA's net interest income (NII) climbed 39 per cent YoY, to Rs 622.3 crore against Rs 448.1 crore in Q3 of the previous year. Revenue from operations jumped 35.6 per cent YoY to Rs 1,698.45 crore in Q3 FY25 against Rs 1,252.85 crore in the year-ago period.
"The stock is in positive territory after reporting a decent set of numbers. Investors with a long-term horizon can add IREDA, given the company's focus on alternative energy-based lending," said Kranthi Bathini, Director of Equity Strategy at WealthMills Securities.
On the technical play, an analyst said the counter looked "slightly bullish." Near-term support may be seen in the Rs 195-185 zone and a decisive breach above Rs 230 level is required for further upside potential.
"IREDA has been attempting to stabilise over the past few trading weeks after a sell-off, currently hovering near a cluster of EMAs. Support is positioned around the Rs 195-185 range, which is expected to cushion any potential declines. A decisive breakout above the Rs 220-230 levels may trigger fresh momentum for the stock," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"IREDA stock price is slightly bullish on daily charts with strong support at Rs 195.3. A daily close above the resistance of Rs 232 could lead to an upside target of Rs 267 in the near term," said Sebi-registered research analyst AR Ramachandran.
IREDA is a 'Navratna' PSU under the administrative controls of the Ministry of New and Renewable Energy. As of September 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.