IREDA Share price dropped sharply on Friday as the PSU announced quarterly numbers. Markets are concerned about issues with asset quality of IREDA and the stock briefly went below Rs 200 levels. IREDA opened at Rs 218 but soon witnessed selling pressure and touched intraday low at Rs 198.61. The stock closed 5.8 percent lower at Rs 203.50.

The company highlighted that its Gross Non-Performing Assets (GNPA) ratio increased to 2.68% in the December quarter, compared to 2.19% in the September quarter. Similarly, the Net Non-Performing Assets (NNPA) ratio rose to 1.50% from 1.04% sequentially, reflecting challenges in asset quality despite strong topline growth.

Pradip Kumar Das, Chairman and Managing Director of IREDA, expressed optimism about the company’s trajectory, stating, "Our outstanding performance in Q3 FY 2024-25 reflects IREDA's steadfast commitment to accelerating India's renewable energy transition."

He further emphasized IREDA’s strategic role in driving the nation’s clean energy agenda, adding, "The significant growth in loan sanctions, disbursements, and the expansion of our loan book highlight our pivotal role in financing sustainable energy projects."

Indian Renewable Energy Development Agency (IREDA), a pivotal player in renewable energy financing, is currently trading between Rs 198.61 and Rs 222.86. With a market capitalization of Rs 54,130 crore and a P/E ratio of 36.96, IREDA has established itself as a major force in India’s green energy transition. Its 52-week high of Rs 310 indicates significant upside potential. This article dives into IREDA’s financial metrics, technical performance including candlestick patterns, Fibonacci retracements, and support-resistance levels, while offering actionable insights for investors. Additionally, the competitive landscape is explored to provide a well-rounded view.

Stock Performance Overview

Key Financial Metrics

Performance Highlights

IREDA has shown robust growth in line with India’s renewable energy push.
The stock’s 52-week high of Rs 310 indicates strong investor confidence and potential upside.

Recent Analyst Recommendations

ICICI Securities
In its January 2025 report, ICICI Securities recommends a Buy with a target price of Rs 250, citing IREDA’s growing loan portfolio and strong position in renewable energy financing.

HDFC Securities
HDFC Securities, in its December 2024 analysis, suggests a target price of Rs 245, emphasizing IREDA’s focus on green energy initiatives and consistent performance in the sector.

Technical Analysis: Key Patterns and Levels

Candlestick Patterns
On the daily charts, IREDA has formed a Bullish Harami Pattern, signaling potential reversal and renewed buying interest. This pattern is strengthened by high trading volumes near the Rs 218 mark.

Fibonacci Retracement Levels
Using the 52-week high of Rs 310 and low of Rs 101.20, the Fibonacci retracement levels are:

The stock is trading near its 50% retracement level of Rs 217.60, suggesting equilibrium.
A breakout above Rs 233.02 could signal further bullish momentum.
Support and Resistance Levels

Immediate Support: Rs 202.18
Critical Support: Rs 166.68
Immediate Resistance: Rs 233.02
Next Resistance: Rs 256.88

Competitive Landscape

REC Limited
REC Limited, with a market cap of Rs 1.30 lakh crore, competes with IREDA in renewable energy financing. REC’s lower P/E ratio and higher dividend yield offer a value-driven investment option.

Power Finance Corporation (PFC)
PFC, with a market cap of Rs 1.39 lakh crore, focuses on financing large-scale energy projects, including renewables. Its diversified portfolio and consistent performance make it a strong competitor.

Actionable Insights for Investors

Short-Term Strategy

Traders can enter near Rs 217.60, targeting Rs 233.02, with a stop-loss at Rs 202.
Medium-Term Potential

Investors can accumulate between Rs 202 and Rs 218 for potential gains as the stock approaches Rs 256.88.
Long-Term Opportunity

IREDA’s alignment with India’s renewable energy goals positions it as a strong contender for long-term investment portfolios.