IREDA shares climb 16% in 2 sessions; here's what investors can do

Shares of Indian Renewable Energy Development Agency (IREDA) Ltd extended their gains for the second consecutive session on Monday. The stock jumped 11.87 per cent to hit a day high of Rs 173.30. At this price, it has moved up 15.57 per cent in two trading days.

IREDA is scheduled to hold its board meeting on March 25 to consider the borrowing plan for financial year 2025-26 (FY26). The state-run renewable energy financier also mentioned that its borrowing limit has been increased by Rs 5,000 crore to Rs 29,200 crore for FY25.

On the technical play, support on the counter could be seen in the 155-150 range. "Any pullback towards Rs 180-200 should be used as an exit opportunity," an analyst said. "If an investor bought IREDA with a positional perspective, then the person can stay invested with a stop loss placed below Rs 155. Those who purchased the stock with a trading-only perspective, any pullback towards Rs 180-200 should be used as an exit opportunity as there could be a lot of volatility," Nilesh Jain, VP - Derivative and Technical Research at Centrum Broking, told Business Today.

"The stock has rebounded from the crucial support zone of Rs 144 and is showing signs of further upside towards Rs 188–200. It is indicating a near-term bullish strength, but remains below key resistance levels, making it an ideal buy-on-dip candidate. As long as IREDA sustains above Rs 150, the bullish outlook remains intact. However, a break below the said level would negate this positive view and could lead to further downside. Traders can consider adding on dips with strict risk management, said Ameya Ranadive, Chartered Market Technician, CFTe, Sr Technical Analyst at StoxBox.

"IREDA is a company thought to be in solar power generation. People bought it as a power generating company not realising this also is a finance company which is catering primarily to renewable energy and within renewable energy, focusing on solar. It's again like a bank or an NBFC but dedicated to a particular activity. From Rs 32 to 320, a 10x jump from listing to its high and now it's around 150 or thereabouts. This was the kind of madness that happened in these shares. So, I believe there is still some pain left in the counter," said market expert Arun Kejriwal.

The counter traded higher than the 5-day, 10-, 20-day and 30-day simple moving averages (SMAs) but lower than the 50-day, 100-, 150-day and 200-day SMAs. Its 14-day relative strength index (RSI) came at 56.11. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The stock has a price-to-equity (P/E) ratio of 27.14 against a price-to-book (P/B) value of 4.46. Earnings per share (EPS) stood at 5.71 with a return on equity (RoE) of 16.43. According to Trendlyne data, IREDA has a one-year beta of 1.4, indicating high volatility.

The company is a 'Navratna' PSU under the administrative controls of the Ministry of New and Renewable Energy. As of December 2024, the government held a 75 per cent stake in it. The organisation offers 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.