
Shares of Indian Renewable Energy Development Agency (IREDA) rose over 3% to fresh record high in early deals on Tuesday. The stock rose 3.12% to Rs 254 on BSE. Market cap of the firm climbed to Rs 63,511 crore. IREDA shares saw a turnover of Rs 101.17 crore as 41.80 lakh shares changed hands on BSE today.
Later the stock fell 10% from record high to Rs 228 on BSE. It fell to a 52 week low of Rs 49.99 on November 29, 2023. The stock listed at a premium of 56.25% over the IPO issue price of Rs 32 in the same session.
The multibagger stock listed at Rs 50 last year.
Kushal Gandhi, Technical Analyst, StoxBox is bullish on the prospects of the stock.
“The price action of IREDA recently witnessed a bullish breakout from the rounding pattern developed over the last four months. The pattern is a sign of trend continuation following a potential accumulation to bolster the positive primary trend. Not only did the breakout come on solid volumes, but the price action also saw a strong follow-through after the breakout. This validates the breakout further. The stock displays an improving EPS strength, high price strength and buyers’ demand, which is a positive sign. We recommend buying the stock for the target of Rs 275 with a protective stop loss at Rs 223,” said Gandhi.
Mandar Bhojane, Equity Research Analyst Choice Broking expects the stock to reach Rs 310 mark.
"IREDA is currently trading at Rs 236.9. On July 9, profit booking was observed from its all-time high level. If the price breaks out above Rs 250, it suggests potential for further upward movement, with projected price targets set at Rs 300 and Rs 310. A significant support level is identified near Rs 215 on the downside. Furthermore, IREDA is currently trading above key Exponential Moving Averages (EMAs), including the 50-day, 100-day, and 200-day EMAs. This indicates robust bullish momentum, signaling the likelihood of sustained upward price action. It is advisable to establish a stop-loss (SL) at Rs 204 to protect the investment against unexpected market reversals. A prudent approach involves considering buying opportunities during market dips at levels around Rs 220. "
Vinod Jhaveri, an independent analyst said, "IREDA has done well from its IPO price and delivered 690% from its IPO price. Renewable energy is a favoured theme and stock market is rewarding the investors in this theme. Technically, IREDA is in a good momentum and can head to Rs 300 odd levels going ahead. The Renewable Energy sector should also get good focus in the upcoming budget."
Gaurav Bissa, VP, InCred Equities said, "IREDA made a name for itself post listing with significant upside in a matter of a few months. Since then, it was seen trading in a consolidation phase in the form of a triangle pattern. It witnessed a strong breakout at Rs 200 levels with strong volumes, which propelled it towards 250 levels. Short term traders are advised to book profits whereas long term investors can hold for the long term. Fresh entry is advised around Rs 200-210 zone, which will be the retest of triangle breakout."
In terms of technicals, the relative strength index (RSI) of the stock stands at 79.6, signaling it's trading in the overbought zone.
IREDA shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 150 day moving averages.
IREDA reported a 382.62 per cent year-on-year (YoY) rise in loan sanctions in the June 2024 quarter to Rs 9,136 crore against Rs 1,893 crore in the June 2023 quarter.Loan disbursements in the last quarter rose 67.61 per cent to Rs 5,320 crore against Rs 3,174 crore in the June 2023 qurter. The firm’s outstanding loan book stood at Rs 63,150 crore in Q1 of this fiscal, up 33.77 per cent over the year-ago's Rs 47,207 crore.
IREDA is a Mini Ratna (Category - I) government enterprise. It is administratively controlled by the Ministry of New and Renewable Energy (MNRE). IREDA has been actively promoting, developing, and extending financial assistance for new and renewable energy projects, as well as energy efficiency and conservation projects for over 36 years.