IREDA shares are down 53% from record high, time to buy?

Shares of Indian Renewable Energy Development Agency Ltd (IREDA) have slipped 53% from their record high reached over a year ago. The stock has also lost 36% from the 52 week high of Rs 227 reached on January 9, 2025. It hit a record high of Rs 310 on July 15, 2024. 

Despite the correction, the stock has attemtped a recovery in the short term. The stock surged 9% in a month, approaching the key Rs 150 mark. 

In the current session, IREDA stock gained 2% to Rs 146.30. Market cap of the renewable energy stock stood at Rs 40,846 crore. Later, the stock closed 1.80% higher at Rs 146.13. 

IREDA stock's simple moving averages signal the stock is also in a short-term uptrend. It trades above its 5 day, 10 day, 20 day, 30 day, 50 day but lower than the 100 day, 150 day and 200 day simple moving averages. 

The stock is trading neither in the oversold nor in the overbought zone, indicates its RSI, which is at 58.7. A RSI value below 30 signals the stock is trading in the oversold zone and above 70 it signals is trading in the overbought zone. 

Riyank Arora, technical analyst at Mehta Equities said, "IREDA continues to trade in a strong uptrend, supported by higher highs and higher lows on daily charts. Immediate support is placed at Rs 135, followed by Rs 128, while resistance lies near Rs 150. Sustaining above support could push the stock towards Rs 155–165 in the near term. Overall bias remains buy on dips."

Jigar S Patel from Anand Rathi said, "Support will be at Rs 138 and resistance Rs 150. A decisive move above the Rs 150 level may trigger a further upside of Rs 155. The expected trading range will be between Rs 138 and Rs 155 for the short-term."

Drumil Vithlani, Technical Research Analyst at Bonanza said,"IREDA remains in a broader corrective phase after a strong prior uptrend. On the daily chart, the stock is trading below its key short- and medium-term moving averages, indicating persistent selling pressure. Price is hovering near a crucial long-term rising trendline around Rs 140– Rs 142, which is acting as immediate support. The RSI has rebounded toward the 55–60 zone, suggesting a mild recovery in momentum, though not a confirmed trend reversal yet. A sustained breakout above Rs 155–160 could trigger a pullback rally toward Rs 175–180. Failure to hold Rs 140 may open downside toward Rs 130."

IREDA is a Mini Ratna (Category - I) government enterprise. It is administratively controlled by the Ministry of New and Renewable Energy (MNRE). IREDA has been actively promoting, developing, and extending financial assistance for new and renewable energy projects, as well as energy efficiency and conservation projects for over 36 years.