IREDA shares slumped 32% year-to-date; is there more pain ahead?

Shares of Indian Renewable Energy Development Agency (IREDA) Ltd were trading 1.36 per cent lower at Rs 151.85 in Wednesday's trade. At the mentioned price, the stock has tumbled 31.54 per cent in the calendar year 2025 so far.

The state-run renewable energy financier said its loan order book registered a 28 per cent (year-on-year) growth during the financial year 2024-25. In FY25, the figure stood at Rs 76,250 crore as against Rs 59,698 crore in the March 2024 fiscal.    

Last month, IREDA's board cleared a borrowing programme of up to Rs 30,800 crore for FY26. Before this, IREDA mentioned that its borrowing limit was increased by Rs 5,000 crore to Rs 29,200 crore for FY25.

A few analysts suggested that the stock looked 'weak' in the near term. Immediate support on the counter could be seen in the Rs 144-140 zone.

Ravi Singh, SVP - Retail Research at Religare Broking, said the stock looked weak on charts. "IREDA can slip towards Rs 140 levels in the near term. Resistance will be at Rs 155," he added.

Kunal Kamble, Senior Technical Research Analyst at Bonanza Group, said, "IREDA is currently hovering near a crucial support zone of Rs 120–123. A bullish candle formed in this region signals strong buying interest and suggests buyers are stepping in to defend the support. While this is a positive sign, staying nimble-footed remains essential. A breakdown below this support zone could lead to a drop towards the Rs 100–80 range. For a sustained positive outlook, the stock must break and hold above the Rs 175 level, which would indicate strength and open up higher targets. Until then, the price action remains range-bound with a cautious bias."

Osho Krishan, Senior Analyst – Technical & Derivative Research at Angel One, said, "IREDA has been experiencing a significant downward trend, showing no signs of recovery or pullback. On the support side, the historical range of Rs 140-130 is expected to provide some stability. On the resistance side, we may encounter obstacles between Rs 155 and Rs 162. A sustained breakthrough above this resistance could only generate momentum in the stock."

Ameya Ranadive, CMT, CFTe, Senior Technical Analyst at StoxBox, said, The stock is exhibiting a weak technical structure as it remains below key moving averages. The recent price action suggests it's a 'sell-on-rise' candidate until a breakout above Rs 170 is achieved. Immediate support lies at Rs 144, followed by Rs 140 and Rs 135 levels. A move above Rs 170 would negate this bearish view and warrant a reassessment of trend strength."

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 52.68. 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 26.97 against a price-to-book (P/B) value of 4.43. 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 1.5, indicating high volatility.

The company is a 'Navratna' PSU under the administrative controls of the Ministry of New and Renewable Energy. As of March 2025, 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.