IREDA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.1
| Stock Code | IREDA | Market Cap | 33,135 Cr. | Current Price | 118 ₹ | High / Low | 187 ₹ |
| Stock P/E | 17.6 | Book Value | 46.0 ₹ | Dividend Yield | 0.00 % | ROCE | 9.37 % |
| ROE | 18.0 % | Face Value | 10.0 ₹ | DMA 50 | 126 ₹ | 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 | 43.8 | MACD | -3.38 | Volume | 82,31,744 | Avg Vol 1Wk | 92,60,879 |
| Low price | 112 ₹ | High price | 187 ₹ | PEG Ratio | 0.45 | Debt to equity | 5.41 |
| 52w Index | 8.29 % | Qtr Profit Var | 37.5 % | EPS | 6.78 ₹ | Industry PE | 18.0 |
📉 Chart & Trend: IREDA is trading at ₹118, below both its 50 DMA (₹126) and 200 DMA (₹144), confirming a bearish bias.
📊 RSI: At 43.8, RSI is neutral-to-weak, showing mild selling pressure.
📉 MACD: Negative at -3.38, reinforcing bearish momentum and lack of immediate recovery signals.
📈 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and potential for a rebound if support holds.
📊 Volume Trends: Current volume (82.3 lakh) is below the 1-week average (92.6 lakh), showing reduced participation and weak conviction.
📌 Momentum Signals: Short-term momentum is weak. Sustaining above ₹115–₹118 support is crucial; a breakout above ₹125–₹130 could trigger recovery.
🎯 Entry Zone: ₹115–₹118 (support zone, cautious entry).
🎯 Exit Zone: ₹130–₹140 (resistance zone, profit-taking advisable).
🔎 Trend Status: The stock is consolidating with weak momentum and bearish undertones.
Positive
- Quarterly PAT improved to ₹585 Cr from ₹549 Cr (+37.5%).
- EPS at ₹6.78 supports valuations.
- ROE at 18% highlights efficiency in generating shareholder returns.
- PEG ratio at 0.45 suggests reasonable valuation relative to growth.
- FII holdings increased slightly (+0.15%).
Limitation
- High debt-to-equity ratio (5.41) raises financial risk.
- ROCE at 9.37% is modest compared to peers.
- No dividend yield, limiting investor income support.
- Price trading below both DMA 50 and DMA 200.
Company Negative News
- DII holdings decreased (-0.06%).
- Weak technical momentum with bearish MACD.
- Stock under pressure technically with consolidation bias.
Company Positive News
- Quarterly profit growth (+37.5%).
- EPS and ROE show strong efficiency.
- FII inflows show confidence in the company.
Industry
- Industry PE at 18.0 is in line with IREDA’s P/E of 17.6, showing fair valuations.
- Renewable energy financing sector is growing, driven by government initiatives and infrastructure expansion.
Conclusion
⚠️ IREDA is in a consolidation phase with weak technical indicators. While fundamentals are supported by profit growth, ROE, and fair valuations, high leverage and modest ROCE limit attractiveness. Short-term traders may consider entry near ₹115–₹118 with strict stop-loss, targeting ₹130–₹140. Long-term investors can accumulate gradually, given sectoral growth in renewable energy financing.
Selva, since you’re benchmarking renewable financing plays, I can prepare a peer overlay with PFC, REC, and NTPC to compare IREDA’s momentum against sector rotation signals. Would you like me to add that basket scan for clearer compounding opportunities?