IREDA - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:01 am

Swing Trade Rating: 3.7

📊 IREDA shows moderate potential for swing trading. The stock is currently priced at ₹133, below both its 50 DMA (₹143) and 200 DMA (₹157), indicating short-term weakness. RSI at 31.3 suggests oversold conditions, while MACD (-3.98) reflects bearish momentum. Strong quarterly profit growth (+41.6%) and reasonable valuation (P/E 21.7 vs industry PE 21.2) support upside potential. Optimal entry would be near ₹130–132, close to support. If already holding, consider exiting around ₹150–155, near resistance levels.

✅ Positive

• Strong quarterly profit growth (₹549 Cr vs ₹247 Cr)
• Healthy ROE (18.0%)
• Reasonable valuation (P/E 21.7 vs industry PE 21.2)
• PEG ratio (0.56) indicates attractive valuation relative to growth
• High trading volume above weekly average

⚠️ Limitation

• Weak ROCE (9.37%)
• High debt-to-equity ratio (5.41)
• No dividend yield (0.00%)
• Stock trading below both 50 DMA and 200 DMA

📉 Company Negative News

• Short-term technical weakness with RSI oversold and MACD negative
• Decline in institutional holdings (FII -0.12%, DII -0.38%)

📈 Company Positive News

• Improved quarterly profits with 41.6% growth
• Strong fundamentals with consistent earnings
• Reasonable valuation compared to industry peers

🏭 Industry

• Industry PE (21.2) is close to IREDA’s PE (21.7), showing fair valuation
• Renewable energy finance sector remains growth-oriented but sensitive to policy and interest rate changes

📝 Conclusion

IREDA presents a cautious swing trade opportunity. Entry near ₹130–132 is optimal, while exit should be considered around ₹150–155. Strong profit growth and attractive PEG ratio support medium-term prospects, but high leverage and weak technicals warrant careful risk management.

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