IREDA shares dive 30% from record high; technical analysts see 'bearish' trend

Indian Renewable Energy Development Agency Ltd shares slipped 5 per cent on Monday to hit their lower circuit limit of Rs 151.45. At this price, the stock has slumped 29.56 per cent from its all-time high value of Rs 215, a level seen earlier this month on February 6.

Despite the said drop, the multibagger scrip has zoomed 373.28 per cent from its initial public offering (IPO) price of Rs 32. IREDA made a bumper stock market debut on November 29 last year.

The renewable energy state-run financier reported a 67.2 per cent rise in its quarterly net profit at Rs 335.54 crore. Revenue from operations for the quarter rose 44.21 per cent to Rs 1,253.20 crore compared with Rs 868.98 crore in the same quarter last year.

Its loan book stood at Rs 50,579.67 crore against Rs 37,887.69 crore year-on-year (YoY), up 33.50 per cent.

Technical analysts largely suggested that the stock looked 'bearish' on daily charts. Support on the counter will be around Rs 140. On the higher side, a decisive close above Rs 170 level is required for further upside.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has slipped below the important support of Rs 155. Next crucial support will be at Rs 139. On the higher side, a decisive breach above the Rs 170-173 zone is needed to improve the overall bias."

AR Ramachandran from Tips2trades said, "The stock price looks bearish on daily charts with strong resistance at Rs 175. A daily close below support of Rs 141 could lead to target of Rs 122 in the near term."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 140 and resistance at Rs 160. A decisive close above Rs 160 level may trigger a further upside till Rs 175. Expected trading range will be between Rs 135 and Rs 180 for a month."

DRS Finvest founder Ravi Singh said, "IREDA's stock looked weak. It can slip towards Rs 120 level."

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.) closed

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