IREDA shares open higher after six sessions amid reports of block deals; check details

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) snapped their losing streak of five sessions in opening trade today amid reports that around 2 crore shares or 0.9 percent stake changed hands in block deals worth Rs 389.80 crore. The deals were carried out a floor price of Rs 160 per share.

The multibagger stock opened 5% higher at Rs 176.75 on BSE in early trade today. The stock ended 3.85% higher at Rs 168.35 on February 14 as reports of the deal trickled in. Market cap of the firm rose to Rs 47,506 crore. IREDA saw 0.78 lakh shares changing hands amounting to a turnover of Rs 1.38 crore on BSE.

Earlier, the stock had lost 22% in four sessions before the previous close.

The renewable energy stock surged to its record high of Rs 215 on February 6 this year. Compared to its IPO issue price of Rs 32, the stock had surged 572% till February 6.

In terms of technicals, the relative strength index (RSI) of the stock stands at 55.8, signaling it's trading neither in the overbought nor in the oversold zone.

Shiju Koothupalakkal - Technical Research Analyst, Prabhudas Lilladher said, "The stock after the strong bull run witnessed has peaked out near Rs 215 zone and subjected to heavy profit booking to slip down drastically in the last four sessions. The highly overheated RSI indicator has cooled off from the overbought zone and currently has arrived near the 50 zone and can anticipate for a revival in the coming days. The near-term crucial support zones would be at around Rs 156 and Rs 144 levels, respectively, which would be a precise level for re-entry and expect for a trend reversal."

Abhijeet from Tips2Trades said, "IREDA stock price is bearish as it is extremely overbought with strong resistance now at Rs 170.65 on the daily charts. A daily close below the support of Rs 148 could lead to a target of Rs 124 in the near term."

The IREDA stock made its market debut at Rs 50 on November 29, 2023. The listing marked a premium of 56.25% over the IPO issue price of Rs 32.

The IPO was open from November 21 to November 23, 2023. The price band of IREDA's IPO was Rs 30-32 apiece with a lot size of 460 shares.

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

Revenue from operations in Q3 climbed 44.21 per cent to Rs 1,253.20 crore compared with Rs 868.98 crore in the corresponding quarter last year. The PSU's loan book surged 33.50 per cent to Rs 50,579.67 crore in Q3 against Rs 37,887.69 crore on a YoY basis.

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.

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.

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