IREDA shares up 13% in 5 sessions; how strong is this upward move?

Indian Renewable Energy Development Agency Ltd shares on Thursday extended their winning run for the fifth straight session. The stock jumped 8.09 per cent to hit an intraday high of Rs 213.10. It eventually settled 5.68 per cent up at Rs 208.35. At this price, the scrip has gained 12.87 per cent in five trading days and delivered multibagger returns by rallying 100.19 per cent in the calendar year 2024 so far. Despite the mentioned spike, it has corrected 32.79 per cent from its record high value of Rs 310, a level seen on July 15, 2024.

Bourses BSE and NSE have put the securities of IREDA under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

"ASM framework is in conjunction with all other prevailing surveillance measures being imposed by the exchanges from time to time and as may be applicable. Further, it may also be noted that the shortlisting of securities under ASM is purely on account of market surveillance and it should not be construed as an adverse action against the concerned company," BSE stated.

On the earnings front, the state-owned firm posted a net profit of Rs 387.75 crore for the quarter ended on September 30, 2024 (Q2 FY25), up 36.18 per cent over Rs 284.73 crore in the year-ago period. During the quarter under review, revenue from operations came at Rs 1,629.55 crore, a rise of 38.49 per cent against Rs l,176.63 crore reported in Q2 FY24.

Technically, support on the counter could be seen in the Rs 188-200 range. And, a decisive close above Rs 215 is required for further upside potential.

"One should definitely hold this stock with a long-term view as the next 10 years will be for the green energy. So, IREDA is a stock one should look out for in the longer run. On an immediate basis, one can buy it with a stop loss placed at Rs 188," market expert Kush Ghodasara told Business Today TV.

"IREDA has witnessed a significant correction from its peak levels of Rs 310. The counter has recently started gaining some traction, leading to a respite. Though it is at a very early stage of reversal, confirmation could be seen once it decisively surpasses Rs 215. Conversely, Rs 200-190 is likely to cushion any shortcomings in the counter," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.

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