IREDA hits fresh all-time high as stock zooms 59% in just 3 days; is more steam left?

Indian Renewable Energy Development Agency Ltd (IREDA) shares continued their strong upward move for the third straight session in Tuesday's trade. The stock soared 20 per cent to hit its lifetime high of Rs 102.02. At this price, the scrip has gained 58.91 per cent in just three days.

The stock made a remarkable stock market debut on November 29, listing with a premium of over 56 per cent against the initial public offering (IPO) of Rs 32. The IPO was the first public issue by a public sector enterprise after Life Insurance Corporation of India (LIC) in May last year.

The recently-listed company has launched its retail division, targeting PM-KUSUM scheme, rooftop solar, and other business-to-consumer (B2C) sectors. "IREDA's retail division sanctioned its first loan amounting to Rs 58 crore under KUSUM-B, underscoring its dedication to emerging as the preferred lender in new segments, mirroring its success in other renewable energy sectors," the firm stated in a BSE filing.

On technical setup, support on the counter could be seen at Rs 92. On the higher side, resistance may be found at Rs 106, followed by Rs 110 and Rs 120 levels.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said "Immediate support will be at Rs 92 and resistance may be seen around Rs 110. The stock may see a trading range between Rs 85 and Rs 120 for next couple of months."

DRS Finvest founder Ravi Singh suggested that the stock may see Rs 120 level in the near term.

AR Ramachandran from Tips2trades said, "IREDA stock price looks bullish on daily charts with next resistance at Rs 106. Allotted investors can hold buy positions till daily close below support of Rs 92 is not broken."

The stock saw heavy trading volumes today as around 3.95 crore shares changed hands. The figure was way more than the two-week average volume of 1.56 crore shares.

Turnover on the counter came at Rs 390.60 crore, commanding a market capitalisation (m-cap) of Rs 27,407.14 crore.

IREDA is a mini Ratna firm under the administrative controls of the Ministry of New and Renewable Energy.

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.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

Also read: Top 10 stocks to watch on December 12, 2023: Infosys, BPCL, Dixon Technologies, Wipro, Canara Bank and more

Also read: Stock recommendations by market analysts for December 12, 2023: Union Bank, West Coast Paper, GAIL and Jindal Steel