IREDA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.3
| Stock Code | IREDA | Market Cap | 36,034 Cr. | Current Price | 128 ₹ | High / Low | 196 ₹ |
| Stock P/E | 19.1 | Book Value | 46.0 ₹ | Dividend Yield | 0.00 % | ROCE | 9.37 % |
| ROE | 18.0 % | Face Value | 10.0 ₹ | DMA 50 | 138 ₹ | DMA 200 | 152 ₹ |
| Chg in FII Hold | 0.15 % | Chg in DII Hold | -0.06 % | PAT Qtr | 585 Cr. | PAT Prev Qtr | 549 Cr. |
| RSI | 39.8 | MACD | -2.53 | Volume | 1,52,63,036 | Avg Vol 1Wk | 1,06,39,268 |
| Low price | 124 ₹ | High price | 196 ₹ | PEG Ratio | 0.49 | Debt to equity | 5.41 |
| 52w Index | 5.71 % | Qtr Profit Var | 37.5 % | EPS | 6.78 ₹ | Industry PE | 19.1 |
📊 Chart Patterns & Trend: IREDA is in a bearish consolidation phase after correcting from its highs. Price is trading below both the 50 DMA (138 ₹) and 200 DMA (152 ₹), indicating short-term weakness and medium-term resistance. Strong support is visible near 124–128 ₹, while resistance lies around 138–145 ₹.
📉 Moving Averages: Both 50 DMA and 200 DMA are acting as resistance. Sustained move above 140–145 ₹ would confirm bullish reversal.
📉 RSI: At 39.8, RSI is weak, suggesting bearish momentum and oversold conditions.
📉 MACD: Negative (-2.53), showing bearish crossover and continued downside momentum.
📊 Bollinger Bands: Price is near the lower band, reflecting oversold conditions. A rebound toward 135–140 ₹ is possible if support holds.
📊 Volume Trends: Current volume (1.52 Cr.) is higher than average weekly volume (1.06 Cr.), showing strong participation despite weakness, indicating possible accumulation.
🎯 Entry Zone: 124–128 ₹ (support zone).
🎯 Exit Zone: 138–145 ₹ (resistance zone).
🔑 Stop Loss: 120 ₹ (below recent support).
Positive
- EPS at 6.78 ₹ supports valuation strength.
- Quarterly PAT improved from 549 Cr. to 585 Cr. (37.5% growth).
- ROE at 18% indicates decent profitability.
- PEG ratio at 0.49 highlights undervaluation relative to growth.
- FII holdings increased (+0.15%), showing foreign investor confidence.
Limitation
- Price trading below both 50 DMA and 200 DMA confirms short-term weakness.
- ROCE at 9.37% is modest compared to peers.
- High debt-to-equity ratio (5.41) raises leverage concerns.
- No dividend yield reduces income attractiveness.
Company Negative News
- DII holdings decreased (-0.06%), showing reduced domestic institutional confidence.
- Stock corrected from 196 ₹ to 128 ₹, reflecting investor caution.
Company Positive News
- Quarterly PAT growth highlights operational improvement.
- FII inflows (+0.15%) show foreign investor confidence.
- Strong trading volume indicates active investor participation.
Industry
- Industry PE at 19.1 vs. stock PE at 19.1 highlights fair valuation.
- Renewable energy financing sector supported by government initiatives and infrastructure push.
Conclusion
⚖️ IREDA is in a bearish consolidation phase with weak signals (RSI low, MACD negative). Short-term bounce is possible from 124–128 ₹, but resistance near 138–145 ₹ limits upside. Medium-term outlook remains cautious due to high leverage and modest ROCE, though PAT growth, PEG ratio, and foreign inflows provide resilience. Risk management is crucial for traders considering entry.
Would you like me to extend this into a peer benchmarking overlay with other renewable energy financing and infrastructure companies (like PFC, REC, and NTPC) to highlight relative strength and sector rotation opportunities?