IREDA shares surge 7% to hit one-year high levels; how strong is this upside?

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) surged 7.20 per cent in Wednesday's trading session to scale their one-year high of Rs 220.25. The stock was last seen trading 6.35 per cent up at Rs 218.50. At this price, the multibagger counter has gained 108.79 per cent in 2024 so far.

The scrip saw heavy trading volume on BSE today as around 1.80 crore shares changed hands at the time of writing this story. The figure was way more than the two-week average volume of 54.88 lakh shares. Turnover on the counter came at Rs 389.02 crore, commanding a market capitalisation (m-cap) of Rs 58,767.98 crore.

Mitesh Panchal, a Sebi-registered analyst, said that the stock has given a breakout on daily charts. It has potential to hit Rs 240-250 levels in the next one week, the market expert told Business Today TV.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 200 and resistance at Rs 219. A decisive close above Rs 219 level may trigger a further upside towards Rs 235. The expected trading range will be between Rs 195 and Rs 240 for the short term."

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-day and 100-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 71.45. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The renewable energy state-run financier recently said it clocked a 382.62 per cent year-on-year (YoY) 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 Q1 FY25 climbed up 67.61 per cent to Rs 5,320 crore against Rs 3,174 crore in the year-ago period. 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 figure of Rs 47,207 crore.

Prior to this, IREDA mentioned that it raised Rs 1,500 crore via bonds. The funds were raised at an annual interest rate of 7.44% for a tenure of 10 years and two months, IREDA stated.

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.