IREDA shares slipped 29% from all-time high levels; should you accumulate the stock on dips?

Shares of Indian Renewable Energy Development Agency Ltd extended their fall for the fourth consecutive session on Monday. The stock fell 2.99 per cent to hit a day low of Rs 220.65. At this price, it has slipped 28.82 per cent from its record high value of Rs 310, a level seen on July 15 this year.

Despite the mentioned drop, the stock has delivered multibagger returns by rallying 589.53 per cent from its initial public offering (IPO) price of Rs 32. It was listed on November 29, 2023.

Analysts said the counter has seen a significant correction from its all-time high levels. One of them suggested accumulating the stock on dips. With that being said, support on the counter could be seen in the Rs 215-200 zone. On the higher end, a decisive breach above the Rs 242-255 range is required for more upside.

"The stock has seen a sharp correction from its all-time high levels. Investors can now start accumulating it on dips," market expert Raghvendra Singh told Business Today TV.

"IREDA has undergone a significant correction from its record high of Rs 310. In terms of specific levels, support is expected in the 215-200 range, which should help stabilise any ongoing fluctuations. However, further selling pressure could disrupt the short-term trend. On the upside, there is strong resistance in the Rs 250-255 zone, where a decisive breakthrough could rejuvenate the stock's momentum," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

"Support will be at Rs 216 for the stock. For the bias to improve, it needs to decisively cross Rs 242 level," said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.

The state-run firm said its profit after tax climbed 30 per cent to Rs 384 crore for the June 2024 quarter (Q1 FY25) compared with Rs 295 crore in the corresponding quarter of last year.

In Q1 FY25, revenue from operations grew 32 per cent year-on-year (YoY) to Rs 1,510 crore from Rs 1,143 crore in the same quarter last year. IREDA said its outstanding loan book stood at Rs 63,207 crore in Q1 against Rs 47,207 crore in the year-ago quarter, up 34 per cent.

IREDA is a 'Navratna' PSU under the administrative controls of the Ministry of New and Renewable Energy. As of June 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.