IREDA stock jumped 11%
The influence of government companies remains intact in the stock market and on Wednesday, the shares of Indian Renewable Energy Development Agency Limited i.e. IREDA proved it once again. There was tremendous enthusiasm among the investors regarding this Navratna company, due to which the stock jumped by 10.85 percent to the level of Rs 142.85 in intraday trading. If we look at the data of last one month, this stock has given excellent returns of about 27 percent. In such a situation, it is natural for every investor who invests money in the market to have a question that what is the story behind this sharp rise and whether there is an opportunity to invest in it at the current price or should one sell and take profit.
What is the real reason for this high speed?
Big gains in any stock often come due to its strong fundamentals. IREDA has recently released its fourth quarter business update for the financial year ending 31 March 2026, which is quite encouraging. According to the data, the company’s loan sanction has increased by 9 percent on an annual basis and has increased to Rs 51,883 crore. In the same period a year ago, this figure was Rs 47,453 crore.
Loans were not only approved, but were also distributed rapidly. The loan disbursement of the company has increased by 16 percent to Rs 34,946 crore, which was Rs 30,169 crore last year. The most important thing is that the total loan book of the company has increased by 22 percent to Rs 93,075 crore. This figure clearly indicates that the company’s core business is expanding rapidly.
What pattern is forming on the charts?
Technical analysts also seem positive about this stock. According to Osho Krishnan, Senior Analyst at Angel One, a falling trendline has been seen breaking on the IREDA chart. In market language, this is considered a strong signal of ‘bullish reversal’. The stock has crossed its important exponential moving average (EMA), which is a positive thing.
However, the 200-day simple moving average (SMA) near Rs 140 is acting as a tough resistance at upper levels. If the stock crosses this hurdle, a new rally may be seen. At the same time, in case of a decline, the zone of Rs 127 to Rs 124 now stands as a strong support.
Jigar S Patel, Senior Manager, Technical Research, Anand Rathi, also believes that currently there is support for the share at Rs 130 and resistance at Rs 140. He estimates that if it remains firmly above Rs 133, it may soon reach the level of Rs 144. From a short term perspective, investors should keep an eye on the range of Rs 130 to Rs 144.
Excellent performance in previous quarters also
Market confidence is also increasing because the company has consistently kept the profit graph high in the last quarters. If we look at the figures for the third quarter, IREDA’s net profit was Rs 584.9 crore, a huge jump of 37.5 percent, which was Rs 425.4 crore a year ago. Apart from this, revenue increased by 25 percent to Rs 2,130 crore and Net Interest Income (NII) increased by 34.8 percent to Rs 897.5 crore. These financial results confirm that the company’s margins and earnings are moving in the right direction.
What is the real business of IREDA?
It is important for investors to know that IREDA is a ‘Navratna’ government company working under the Ministry of New and Renewable Energy (MNRE). Its main function is to provide financial assistance or loans to renewable energy projects in the country. Since the future belongs to green energy, this sector is also in the focus of the government.
Also read – This defense share which was once worth ₹ 12 has given a return of 14,000%, now got a big order of ₹ 590 crore from the Defense Ministry.
Disclaimer: This article is for information only and should not be considered as investment advice in any way. TV9 Bharatvarsha advises its readers and viewers to consult their financial advisors before taking any money-related decisions.
