IREDA shares rise 8% to hit a record high; An analyst sees upside to levels of ₹270

    Shares of Indian Renewable Energy Development Agency Ltd. (IREDA) scaled a record high on Monday (July 8), climbing as much as 9% and extending their gains for the third straight day.

    The multibagger stock made an all-time high of ₹248.85 today and has jumped over 135% so far this year.

    Independent Market Analyst Sarvendra Srivastava said that IREDA’s highest point was around the 222 level. He mentioned that the stock has decisively broken past this level this month.

    Speaking to CNBC-TV18, Srivastava said, when a stock enters “blue sky territory”—trading at all-time high levels—it is advisable for investors to hold on to it. He recommends adding a stop loss below ₹200 level for moderate risk-takers, and at ₹214 for those with a more aggressive investment approach.

    Srivastava suggests giving IREDA 1-3 months of trading time. He predicts the stock could rise to the ₹265-270 level, at which point investors can consider booking profits.

    A block deal took place in IREDA towards the close of trade today, where 0.16% of the company’s total equity changed hands. The transaction was valued at ₹100 crore.

    Buyers and sellers in the transaction are not known. The stock saw a spike in trade after the block deal.

    In a recent interaction with CNBC-TV18, IREDA CMD Pradip Kumar Das said the company has requested the government to allow it to carry out an Follow-on Public Offer (FPO) as it will need further equity infusion considering the pace at which it is growing.

    Through the FPO, IREDA seeks to raise between ₹4,000 crore to ₹5,000 crore.

    At the end of the March 2024 quarter, the government held a 75% stake in IREDA.

    Key levels

    IREDA has entered the overbought zone, signals its RSI at 74.8. This implies that stock may show pullback.

    IREDA has a one-year beta of 1, indicating average volatility during the period.

    The stock is trading higher than the 5 day, 10 day, 20 day, 50 day, 100 day and 200 day moving averages.

    IREDA had made its stock market debut towards the end of last year at an IPO price of ₹32. Within seven months of listing, the stock had made a record high of ₹248.85, which is nearly 8 times from its IPO price.

    At current levels, IREDA commands at market capitalisation of nearly ₹66,240 crore.

    Shares of IREDA are currently trading 7.65% higher at ₹246.35 apiece on the NSE.

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