IREDA shares zoom 17% to hit fresh record high ahead of quarterly results

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) rose sharply in Thursday's trade. The stock zoomed 17.26 per cent to hit an all-time high of Rs 289.45. It was last seen trading 16.20 per cent higher at Rs 286.85. At this price, the multibagger scrip has ascended by 174.10 per cent on a year-to-date (YTD) basis.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "IREDA has been in focus after getting 'Navratna' status. In addition, the focus on renewable energy sector is going up and IREDA is one of the key beneficiaries. The stock has multiplied from its IPO price."

The state-owned firm's initial public offering (IPO) price was Rs 32. It has given stellar returns after getting in listed on November 29 last year.

"Investors with a medium- to short-term view need to have a trailing stop loss. For the long term, one can hold this stock with upcoming results in focus. The stock is in the momentum zone and traders should maintain a strict stop loss. It is fairly valued and can still gain 5-10 per cent from current levels," Bathini added.

IREDA is scheduled to announce its quarterly earnings on July 12.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 254 and resistance at Rs 290. A decisive close above Rs 290 level may trigger a further upside towards Rs 295. The expected trading range will be between Rs 250 and Rs 300 for the short term."

The counter saw heavy trading volume on BSE today as around 1.48 crore shares changed hands today on BSE at the time of writing this story. The figure was higher than the two-week average volume of 82.01 lakh shares. Turnover on the counter came at Rs 391.60 crore, commanding a market capitalisation (m-cap) of Rs 77,044.78 crore. There were 3,61,723 buy orders against sell orders of 3,03,169 shares.

IREDA is 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.