IREDA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.9
| Stock Code | IREDA | Market Cap | 36,573 Cr. | Current Price | 130 ₹ | High / Low | 187 ₹ |
| Stock P/E | 19.4 | Book Value | 46.0 ₹ | Dividend Yield | 0.46 % | ROCE | 9.37 % |
| ROE | 18.0 % | Face Value | 10.0 ₹ | DMA 50 | 128 ₹ | DMA 200 | 138 ₹ |
| Chg in FII Hold | 0.07 % | Chg in DII Hold | -0.07 % | PAT Qtr | 585 Cr. | PAT Prev Qtr | 549 Cr. |
| RSI | 52.4 | MACD | 0.09 | Volume | 57,92,188 | Avg Vol 1Wk | 58,84,598 |
| Low price | 109 ₹ | High price | 187 ₹ | PEG Ratio | 0.50 | Debt to equity | 5.41 |
| 52w Index | 27.6 % | Qtr Profit Var | 37.5 % | EPS | 6.78 ₹ | Industry PE | 19.0 |
📉 IREDA is trading slightly above its 50 DMA (₹128) but below the 200 DMA (₹138), reflecting short-term strength with medium-term resistance. RSI at 52.4 indicates neutral-to-bullish momentum, while MACD is mildly positive (0.09), suggesting weak bullish crossover. Bollinger Bands show price mid-range, indicating consolidation. Current volume (57.9 lakh) is in line with average (58.8 lakh), showing steady participation.
🔑 Short-term momentum signals: Neutral-to-positive, with potential upside if price sustains above ₹135–₹140 zone.
🎯 Entry Zone: ₹125–₹130 (support region)
🚪 Exit Zone: ₹145–₹155 (resistance region)
📊 Trend Status: Consolidating with mild bullish bias
Positive
- Trading above 50 DMA supports short-term strength
- RSI above 50 indicates momentum buildup
- Quarterly PAT improved (₹549 Cr. → ₹585 Cr.)
- EPS at ₹6.78 supports valuation
- PEG ratio at 0.50 highlights attractive growth valuation
- ROE (18%) highlights profitability
- FII holdings increased (+0.07%)
Limitation
- Price trading below 200 DMA (₹138), showing medium-term weakness
- MACD only marginally positive, lacking strong momentum
- High debt-to-equity ratio (5.41) raises leverage risk
- ROCE (9.37%) remains modest
- DII holdings decreased (-0.07%), showing reduced domestic support
Company Negative News
- High leverage with debt-to-equity at 5.41
- Price struggling to sustain above long-term averages
Company Positive News
- Quarterly PAT improved from ₹549 Cr. to ₹585 Cr.
- FII inflows (+0.07%) support investor confidence
- Strong fundamentals with attractive PEG ratio
Industry
- Industry PE at 19.0 highlights sector trading at fair multiples
- Renewable energy sector benefiting from government initiatives and rising demand
Conclusion
⚖️ IREDA shows neutral-to-positive technical signals with RSI above 50 and marginally positive MACD. Entry near ₹125–₹130 offers favorable risk-reward, with profit booking around ₹145–₹155. Trend remains consolidative with mild bullish bias, requiring breakout above 200 DMA (₹138) for sustained upside momentum. Fundamentals remain attractive with strong PAT growth and PEG ratio, though high leverage is a concern.
Would you like me to extend this into a renewable energy sector overlay comparing IREDA against peers like PFC, REC, and NTPC Green to highlight sector-relative strength and valuation positioning?