IREDA shares tumble 32% in a month; analysts' outlook, price targets, resistance and more

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) are down 32% from their record high in a month. IREDA shares, which hit a record high of Rs 215 on February 6, 2024 fell to Rs 146.55 in the afternoon session today. IREDA shares saw a high turnover of Rs 51.65 crore in the current session as 34.62 lakh shares changed hands on BSE. Shares of IREDA fell 4% to Rs 1456.55 against the previous close of Rs 153. IREDA’s market cap fell to Rs 39,550 crore. The stock fell to a record low of Rs 49.99 on November 29, 2023.

Jigar S Patel, Senior Manager, Technical Research Analyst at Anand Rathi Shares and Stock Brokers expects the stock to trade in a range of Rs 135 and Rs 180 for a month.

"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,” said Patel.

Rahul Ghose, CEO, Hedged.in said, "The IREDA stock has constantly been selling off for the past couple of months after its peak around Rs 215 with none of the support levels including the last one at Rs 154 being respected. The counter is currently trading in a downward sloping channel, which establishes a strong downtrend and also is facing constant reduction in institutional holding in the stock. Both of these points are a cause of concern in the stock and hence Initiating a long position at this point would be counter-productive. Looking at the price action, we should wait and one can look for aggressive long only at the Rs 127-128 levels keeping a strict stop loss at Rs 113."

Abhijeet from Tips2Trades said, "IREDA stock price is sideways to bearish on the Daily charts with strong resistance at Rs 164. A daily close below the support of Rs 141 could lead to a target of Rs 124 in the near term."

In terms of technicals, the relative strength index (RSI) of the stock stands at 45.6, signaling it's trading neither in the overbought nor in the oversold zone.

IREDA reported a 67 per cent rise in net profit to Rs 335.54 crore for the December quarter. The Q3 show was led by growth in the loan book and a huge reduction in net non-performing assets (NPAs) from 2.03 per cent to 1.52 per cent year-on-year.

Revenue from operations in climbed 44.21 per cent to Rs 1,253.20 crore in Q3 compared with Rs 868.98 crore in the corresponding quarter last year. IREDA said its loan book climbed to Rs 50,579.67 crore against Rs 37,887.69 crore YoY, up 33.50 per cent.

Shares of IREDA made their market debut at a premium of 56.25% to the issue price at Rs 50 on November 29 on BSE and NSE. The price band of IREDA's IPO was Rs 30-32 apiece with a lot size of 460 shares. The IPO was open for bidding from November 21 to November 23.

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