IREDA Share Price can go down to Rs 212 after Rs 236, know the analysis of next 7 days
Shares of the Indian Renewable Energy Development Agency (IREDA) are experiencing notable fluctuations in the stock market. The stock has seen a decline of 2.99% today, reaching a low of ₹220.65, which marks a significant drop of 28.82% from its recent all-time high of ₹310 recorded on July 15, 2024. This recent downturn has raised questions among investors regarding the future performance of IREDA shares.
Main Points
IREDA shares have been on a rollercoaster ride since their listing on November 29, 2023. Initially priced at ₹32, the stock surged dramatically, offering multi-bagger returns of 589.53% from its IPO price. However, the recent market correction has left many investors wondering if this is a buying opportunity or a signal to hold off.
According to various analysts, the stock’s recent performance indicates a potential for further declines if certain support levels are breached. Technical analyst Raghvendra Singh suggests that investors might consider accumulating shares during dips, particularly as support levels are expected around ₹215 to ₹200. Conversely, for the stock to regain upward momentum, it must decisively break through the resistance levels in the ₹242 to ₹255 range.
Market expert Osho Krishan emphasizes the importance of these support and resistance levels. He notes that while the stock has undergone a significant correction, it could stabilize if it holds above ₹215. If it continues to fall below this threshold, further selling pressure may ensue, disrupting any potential recovery.
Despite the recent price drop, IREDA reported a robust financial performance for the June 2024 quarter. The company’s profit after tax rose by 30% year-on-year to ₹384 crore, up from ₹295 crore in the same quarter last year. Additionally, revenue from operations increased by 32% to ₹1,510 crore, compared to ₹1,143 crore in the previous year.
The outstanding loan book of IREDA also saw significant growth, reaching ₹63,207 crore, which is a 34% increase from ₹47,207 crore year-on-year. This strong financial performance highlights the company’s potential for growth, despite the current market volatility.
The sentiment surrounding IREDA shares is mixed among analysts. While PhillipCapital has issued a ‘Sell’ rating with a target price of ₹130, ICICI Direct maintains a ‘Buy’ rating with a target of ₹330. This divergence in opinions reflects the uncertainty in the market regarding IREDA’s future performance.As of now, IREDA’s market capitalization stands at approximately ₹63,458 crore. The stock has corrected by about 7% over the past week, indicating a broader trend of volatility that investors should be aware of.
For investors looking to navigate the current market landscape, several strategies can be employed:
- Monitor Support Levels: Keep an eye on the ₹215 to ₹200 support range. If the stock holds above these levels, it may present a buying opportunity.
- Set Exit Points: If you already own shares, consider setting exit points around ₹250 to ₹260, as suggested by technical analysts, to lock in profits before any further declines.
- Diversify Investments: Given the volatility in IREDA shares, diversifying your portfolio can help mitigate risks associated with this stock.
- Stay Informed: Regularly check for updates on IREDA’s financial performance and market conditions to make informed decisions.
Disclaimer: The information given in this article is from investment experts and brokerage companies, they do not represent Local Haryana. Before taking any investment related decision, you must consult a certified expert.
