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.