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IREDA share price surged by 6.30% on May 12, 2025, reaching Rs. 166.25, though they have corrected by 25.29% YTD. Despite solid financial results, including a 48.66% YoY profit growth and a 36.93% revenue increase, analysts suggest caution. The technical resistance is at Rs. 170. The stock’s beta of 1.49 indicates greater market sensitivity, and the current P/E ratio suggests potential overvaluation. A "sell-on-rally" strategy is recommended for short-term investors.
IREDA (Indian Renewable Energy Development Agency) shares experienced a sudden spike of 6.30% on May 12, 2025. The stock touched an intra-day high of Rs. 166.25. As of 12 PM, IREDA share price was up by 5.95% at Rs. 165.70. This recent rise follows a temporary two-day losing streak. Despite this upward move, the stock has corrected by 25.29% year-to-date (YTD), which indicates potential caution for investors in the short term.
The stock opened at Rs. 165.00 and closed at Rs. 156.48 on the previous session. The volume for the day was 6,680,252 shares, with a total of Rs. 11,046.46 lakh. VWAP (Volume-Weighted Average Price) was Rs. 165.25, reflecting the average price at which the majority of the trades took place in the day.
In its recent quarterly earnings report for Q4 FY25, IREDA reported a significant 48.66% YoY growth in its consolidated net profit. The net profit now amounts to Rs. 501.55 crore, compared to Rs. 337.39 crore in Q4 FY24. This positive financial performance was driven by a 36.93% increase in revenue from operations. The revenue rose to Rs. 1,905.06 crore from Rs. 1,391.26 crore in the same quarter last year.
Furthermore, IREDA's loan order book showed good growth of 28% YoY, standing at Rs. 76,250 crore in FY25 from Rs. 59,698 crore in FY24. These figures reflect the company's strong performance, especially in financing and services in the renewable energy sector. It means that the IREDA shares have good long-term growth potential.
Though the financial performance is healthy, technical analysts are cautious regarding IREDA's future movement. The stock's support areas are marked at the Rs. 128-121 levels, which means it may decline if it goes below these levels. Alternatively, resistance areas are noted at the Rs. 170 level, which the stock hit today.
IREDA share price chart shows gains of 5.67% as of 12.21 PM on May 12, 2025:
Kunal Kamble, a senior technical analyst with Bonanza, has suggested a "sell-on-rally" approach around Rs. 170. He stated that higher resistance could be faced around Rs. 185. Another expert, Jigar S Patel of Anand Rathi, echoed this cautious sentiment. Rathi suggested a conclusive breakout above the trendline may be seen before setting up fresh positions.
The high beta (1.49) of the stock means increased volatility relative to the overall market, so investors must be ready for short-term swings. Despite IREDA's solid quarterly numbers, its present P/E of 26.16 implies that it may be trading above its industry peers as the sector P/E stands at only 11.59. This might mean that the stock is overvalued in the short run.
As a ‘Navratna’ PSU in the Ministry of New and Renewable Energy, IREDA has sound government support. The government holds 75% of the company's shareholding. The company is instrumental in providing finance to renewable energy ventures in India.
Investors may move cautiously on IREDA shares. The company's fundamentals are solid, with terrific growth in profitability and a strong loan book. The stock's resistance levels near Rs. 170 and steep YTD decline of 25.29% means fresh positions is not the right time to begin. Majority of analysts recommend a ‘Buy’ rating for the long-term investors.
Government backing and the company’s leadership in India's renewable energy industry mean IREDA shares have good long-term prospects. However, short-term fluctuations and resistance levels must be a cause of concern for investors to be watchful of. The investors should wait for a breakout or consolidation confirmation before taking any significant action.
