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Indian Renewable Energy Development Agency (IREDA) shares rallied nearly 7% on Monday, November 9, amid strong buying interest and high trading volumes. IREDA share price opened at ₹111.62 apiece on the NSE, against their previous close of ₹111.46, and climbed to an intraday high of ₹119.58, marking a gain of around 7.3% from the previous closing price.
The stock witnessed significant trading activity, with more than 3 crore shares changing hands by around 1:30 pm, indicating strong investor participation. The rally comes despite IREDA shares remaining under pressure over the longer term, having declined around 20% in the past year.
The buying interest comes after the company's September-quarter results, which showed a sharp sequential improvement in profitability. Investors are also tracking the company's lending growth, asset quality and financing opportunities in India's renewable energy sector.
IREDA reported almost flat net profit for the September quarter of FY27, while operating profit registered stronger growth and asset quality improved sequentially.
The state-owned renewable energy lender posted a net profit of ₹552 crore, marginally higher by 0.5% compared with ₹549 crore in the year-ago period. Meanwhile, operating profit increased 16.5% year-on-year to ₹904 crore, against ₹776 crore reported in the corresponding quarter of the previous financial yea.
The company's asset quality also improved compared with the preceding quarter. Gross non-performing assets (NPAs) declined to 3.57% from 3.76%, while net NPAs eased to 1.08% from 1.23%. The sequential improvement provides some relief, although investors will continue to monitor asset quality as IREDA expands its lending exposure to the renewable energy sector.
Despite Monday's sharp rally, IREDA shares have remained under pressure over the past year. The stock has declined approximately 20.6% over the last 12 months, underperforming the broader market.
The shares have traded in a 52-week range of ₹98.78 to ₹153.48. Monday's intraday high of ₹119.58 indicates a recovery from the recent lows, although the stock remains considerably below its 52-week peak.
On the other hand, the stock has gained traction in recent sessions, with its one-week return turning positive by around 15.8%, reflecting improving near-term momentum
According to Mahesh M Ojha, VP Research & Business Development at Kantilal Chhaganlal Securities, IREDA shares have near-term upside potential, with a stop loss at ₹108 and successive upside targets at ₹124, ₹132 and ₹145.
"IREDA shares can be considered with a stop loss of ₹108. On the upside, the stock may move towards ₹124, followed by ₹132 and ₹145-plus levels. Investors should maintain the prescribed stop loss to manage downside risk," the expert said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.
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