IREDA - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 4.0
| Stock Code | IREDA | Market Cap | 37,953 Cr. | Current Price | 135 ₹ | High / Low | 187 ₹ |
| Stock P/E | 20.2 | Book Value | 46.0 ₹ | Dividend Yield | 0.44 % | ROCE | 9.37 % |
| ROE | 18.0 % | Face Value | 10.0 ₹ | DMA 50 | 127 ₹ | DMA 200 | 139 ₹ |
| Chg in FII Hold | 0.07 % | Chg in DII Hold | -0.07 % | PAT Qtr | 585 Cr. | PAT Prev Qtr | 549 Cr. |
| RSI | 60.3 | MACD | 4.85 | Volume | 63,25,444 | Avg Vol 1Wk | 86,94,906 |
| Low price | 109 ₹ | High price | 187 ₹ | PEG Ratio | 0.52 | Debt to equity | 5.41 |
| 52w Index | 33.9 % | Qtr Profit Var | 37.5 % | EPS | 6.78 ₹ | Industry PE | 19.8 |
📈 IREDA is trading above its 50 DMA (₹127) but slightly below the 200 DMA (₹139), showing short-term strength but medium-term resistance. RSI at 60.3 indicates healthy momentum, while MACD at 4.85 confirms bullish crossover. Bollinger Bands show price leaning toward the upper band, reflecting buying interest. Current volume (63.2 lakh) is below average (86.9 lakh), highlighting reduced participation despite price strength.
🔑 Short-term momentum signals: Bullish bias, with potential continuation if price sustains above ₹135–₹140.
🎯 Entry Zone: ₹128–₹135 (support region)
🚪 Exit Zone: ₹145–₹150 (resistance region)
📊 Trend Status: Consolidating with bullish tilt
Positive
- Trading above 50 DMA supports short-term strength
- Quarterly PAT growth (+37.5%) shows strong earnings momentum
- EPS at ₹6.78 supports valuation
- PEG ratio at 0.52 indicates attractive growth valuation
- ROE (18%) highlights profitability
Limitation
- Price trading below 200 DMA (₹139), showing medium-term weakness
- High debt-to-equity ratio (5.41) raises leverage risk
- ROCE (9.37%) remains modest
- Volume below average, limiting breakout potential
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.
- Institutional activity with FII (+0.07%) inflows
- Strong fundamentals with attractive PEG ratio
Industry
- Industry PE at 19.8 highlights sector trading at fair multiples
- Renewable energy sector benefiting from government initiatives and rising demand
Conclusion
⚖️ IREDA shows bullish technical signals with RSI above 60 and positive MACD, supported by strong earnings growth and attractive PEG ratio. Entry near ₹128–₹135 offers favorable risk-reward, with profit booking around ₹145–₹150. Trend remains consolidative with bullish tilt, requiring breakout above 200 DMA (₹139) for sustained upside momentum.
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 relative strength and valuation positioning?