IREDA - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.2
| Stock Code | IREDA | Market Cap | 32,756 Cr. | Current Price | 117 ₹ | High / Low | 187 ₹ |
| Stock P/E | 17.4 | Book Value | 46.0 ₹ | Dividend Yield | 0.00 % | ROCE | 9.37 % |
| ROE | 18.0 % | Face Value | 10.0 ₹ | DMA 50 | 125 ₹ | DMA 200 | 144 ₹ |
| Chg in FII Hold | 0.15 % | Chg in DII Hold | -0.06 % | PAT Qtr | 585 Cr. | PAT Prev Qtr | 549 Cr. |
| RSI | 41.5 | MACD | -3.20 | Volume | 74,29,319 | Avg Vol 1Wk | 86,47,496 |
| Low price | 112 ₹ | High price | 187 ₹ | PEG Ratio | 0.45 | Debt to equity | 5.41 |
| 52w Index | 6.45 % | Qtr Profit Var | 37.5 % | EPS | 6.78 ₹ | Industry PE | 17.6 |
📊 IREDA shows moderate potential for swing trading. The RSI at 41.5 indicates neutral momentum, while the MACD (-3.20) suggests mild bearish sentiment. The price is trading below both the 50 DMA (125 ₹) and 200 DMA (144 ₹), reflecting short-term weakness. Fundamentally, the company has decent ROE (18.0%) and improving profits (PAT up from 549 Cr. to 585 Cr.), but weak ROCE (9.37%) and high debt-to-equity (5.41) raise caution. Valuation is fair with a P/E of 17.4 compared to industry average of 17.6, and PEG ratio (0.45) suggests growth is attractively priced. Institutional flows are mixed, with minor FII inflows (+0.15%) and slight DII outflows (-0.06%).
💡 Optimal Entry Price: Around 115–118 ₹, near current levels, with confirmation of reversal signals.
🚪 Exit Strategy (if already holding): Consider exiting near 125–130 ₹ if a rebound occurs, or cut losses if the price falls below 110 ₹ with strong volume.
Positive
- Quarterly profit growth (PAT up 37.5%).
- ROE at 18.0% shows strong shareholder returns.
- PEG ratio of 0.45 suggests growth is attractively priced.
- Minor FII inflows (+0.15%) show foreign investor confidence.
Limitation
- Price trading below both 50 DMA and 200 DMA confirms bearish trend.
- High debt-to-equity ratio (5.41) raises financial risk.
- ROCE (9.37%) remains weak compared to peers.
- No dividend yield (0.00%), limiting income support.
Company Negative News
- High leverage could pressure future earnings.
- Weak technical indicators (RSI, MACD) suggest continued selling pressure.
- Slight DII outflows (-0.06%) reduce domestic confidence.
Company Positive News
- Quarterly profit growth from 549 Cr. to 585 Cr.
- EPS at 6.78 ₹ supports earnings visibility.
- Minor FII inflows (+0.15%) show foreign investor confidence.
Industry
- Industry P/E at 17.6 is aligned with IREDA’s 17.4, suggesting fair valuation.
- Renewable energy finance sector remains growth-oriented, supported by government initiatives and rising demand for clean energy.
Conclusion
✅ IREDA is a moderately good candidate for swing trading, supported by profit growth, strong ROE, and attractive PEG valuation. However, weak technicals and high debt levels limit short-term upside. Traders may enter around 115–118 ₹ with momentum confirmation and target exits near 125–130 ₹. If already holding, monitor closely and protect downside below 110 ₹.