IREDA shares slip nearly 28% in 2025 so far; time to buy or stay cautious?

Shares of Indian Renewable Energy Development Agency (IREDA) Ltd were trading 0.60 per cent higher in Tuesday's trade at Rs 160. Despite the uptick, the stock is still down 27.86 per cent so far in calendar year 2025.

This comes even as the state-run renewable energy financier posted robust provisional business numbers for the June quarter. Loan sanctions rose 29 per cent year-on-year (YoY) to Rs 11,740 crore, while disbursements climbed 31 per cent to Rs 6,981 crore. The company's outstanding loan book also grew 27 per cent to Rs 79,960 crore from Rs 63,207 crore in the same period last year.

While a few analysts believe the counter looks weak in the near term, one suggests high-risk investors may consider holding the stock.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, noted that IREDA has corrected nearly 50 per cent from its peak. He said the stock is currently consolidating and advised that long-term investors with a high-risk appetite can consider holding on.

According to AR Ramachandran, a Sebi-registered independent analyst, "IREDA stock price is bearish on daily charts with strong resistance at Rs 164. A daily close below the support of Rs 159 could lead to a downward target of Rs 153 in the near term."

Drumil Vithlani, Technical Research Analyst at Bonanza, said, "IREDA continues to face persistent resistance near its falling trendline, highlighting sustained supply pressure at higher levels. From a technical standpoint, as long as the stock remains below Rs 170, the broader bias is tilted to the downside. A close below the immediate support level of Rs 160 could trigger further selling pressure, potentially dragging the stock lower toward Rs 155 in the near term."

Technically, the counter traded lower than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 38.16. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The scrip has a price-to-earnings (P/E) ratio of 29.12 against a price-to-book (P/B) value of 4.79. Earnings per share (EPS) stood at 5.46 with a return on equity (RoE) of 16.43. According to Trendlyne data, IREDA has a one-year beta of 1.5, indicating high volatility.

The company is a 'Navratna' PSU under the administrative control of the Ministry of New and Renewable Energy. As of June 11, 2025, the government held a 71.76 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.