IREDA - Swing Trade Analysis with AI Signals
Back to ListHere’s a structured swing trade analysis for Indian Renewable Energy Development Agency (IREDA) based on the provided parameters
Swing Trade Rating: 3.5
| Stock Code | IREDA | Market Cap | 35,936 Cr. | Current Price | 128 ₹ | High / Low | 175 ₹ |
| Stock P/E | 19.2 | Book Value | 49.1 ₹ | Dividend Yield | 0.47 % | ROCE | 8.69 % |
| ROE | 15.6 % | Face Value | 10.0 ₹ | DMA 50 | 126 ₹ | DMA 200 | 136 ₹ |
| Chg in FII Hold | 0.07 % | Chg in DII Hold | -0.07 % | PAT Qtr | 493 Cr. | PAT Prev Qtr | 585 Cr. |
| RSI | 54.3 | MACD | -0.92 | Volume | 70,34,868 | Avg Vol 1Wk | 60,30,237 |
| Low price | 109 ₹ | High price | 175 ₹ | PEG Ratio | 0.65 | Debt to equity | 5.65 |
| 52w Index | 29.3 % | Qtr Profit Var | -1.80 % | EPS | 6.67 ₹ | Industry PE | 18.9 |
📊 IREDA shows moderate potential for swing trading. The stock is trading near its 50 DMA (126 ₹) but below its 200 DMA (136 ₹), reflecting short-term support with medium-term weakness. RSI at 54.3 suggests neutral momentum, while MACD (-0.92) indicates mild bearishness. Fundamentals are mixed: ROE (15.6%) is supportive, but ROCE (8.69%) is modest and debt-to-equity (5.65) is high. Valuation is fair with P/E (19.2 vs industry 18.9) and PEG ratio (0.65). PAT declined sequentially (₹585 Cr. → ₹493 Cr.), raising caution.
💡 Optimal Entry Price: Around 118–120 ₹ (near support zone above 109 ₹ low).
📈 Exit Strategy (if already holding): Consider booking profits near 130–135 ₹ (resistance zone close to 200 DMA). Use a stop-loss around 115 ₹ to manage risk.
Positive
- ✅ Fair valuation with P/E (19.2) close to industry average (18.9).
- ✅ PEG ratio (0.65) suggests reasonable growth pricing.
- ✅ ROE (15.6%) supports profitability.
- ✅ EPS at 6.67 ₹ provides earnings stability.
- ✅ Increase in FII holdings (+0.07%).
Limitation
- ⚠️ Stock trading below 200 DMA, showing medium-term weakness.
- ⚠️ Weak ROCE (8.69%).
- ⚠️ High debt-to-equity ratio (5.65).
- ⚠️ PAT declined quarter-on-quarter (₹585 Cr. → ₹493 Cr.).
- ⚠️ Dividend yield is modest at 0.47%.
Company Negative News
- ❌ Decline in PAT quarter-on-quarter.
- ❌ Reduction in DII holdings (-0.07%).
Company Positive News
- ✅ Increase in FII holdings (+0.07%).
- ✅ PEG ratio indicates fair growth pricing.
- ✅ Strong ROE supports profitability.
Industry
- ⚡ Industry P/E at 18.9, close to IREDA’s 19.2, suggesting fair valuation.
- 📈 Renewable energy financing sector benefits from government push but remains sensitive to interest rate cycles and project execution risks.
Conclusion
🔎 IREDA is a moderately attractive swing trade candidate. Entry near 118–120 ₹ offers a safer margin, with exit around 130–135 ₹. Strong ROE and fair valuation support the trade, but high debt levels, weak ROCE, and declining PAT require cautious positioning with strict stop-loss discipline.
Would you like me to extend this into a peer benchmarking report comparing it with REC and PFC, or a sector overlay to highlight renewable energy financing opportunities?