IREDA shares up 64% year-to-date; what's next for this PSU energy stock?

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) rose sharply in Monday's trade. The stock jumped 11.60 per cent to hit a high of Rs 179.45. It was last seen trading 6.81 per cent higher at Rs 171.75. At this price, IREDA has gained 64.12 per cent on a year-to-date (YTD) basis. And, the multibagger scrip has rallied 436.72 per cent from its initial public offering (IPO) price of Rs 32. IREDA made a stellar stock market debut on November 29 last year.

Despite the mentioned rise, the counter has slipped 20.12 per cent compared to its all-time high value of Rs 215, a level seen earlier this year on February 6.

The state-run firm has reported a net profit of Rs 337.38 crore during the fourth-quarter (Q4 FY24), up 33.03 per cent from Rs 253.62 crore in the year-ago period.

IREDA's topline (income from operations) jumped 34.29 per cent to Rs 1,391.64 crore in Q4 FY24 as against Rs 1,036.32 crore in the corresponding period last year. The company's debt equity ratio fell to 5.80 in Q4 FY24 compared to 6.77 in Q4 FY23.

IREDA has also approved setting up of a unit to cater retail business in RE and emerging sectors such as PM KUSUM, rooftop solar and other B2C segment.

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The stock has resistance around the Rs 185 zone. Support will be at Rs 165."

AR Ramachandran from Tips2trades said, "IREDA looks bearish on daily charts with strong resistance at Rs 184. A daily close below support of Rs 163 could lead it to a lower level of Rs 140 in the near term."

juigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 163 and resistance at Rs 184. A decisive close above the Rs 184 level may trigger a further upside till Rs 200. The expected trading range will be between Rs 152 and Rs 215 for a month."

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.