Indian Renewable Energy Development Agency Ltd Falls to 52-Week Low of Rs.124.2

Stock Price Movement and Market Context

On 1 Feb 2026, IREDA’s share price fell to Rs.124.2, representing a drop of 5.94% intraday from its high of Rs.136.2. This decline contributed to a day’s loss of 1.40%, underperforming the Finance sector’s fall of 2.82% and lagging the broader market’s negative trend. The Sensex itself reversed sharply after a positive opening, closing down 1.27% at 81,221.65 points.

The stock has now recorded losses for three consecutive sessions, accumulating a negative return of 2.91% over this period. It is trading below all key moving averages — 5-day, 20-day, 50-day, 100-day, and 200-day — signalling sustained bearish momentum. This technical positioning underscores the challenges faced by the stock in regaining upward traction.

Long-Term Performance and Relative Comparison

Over the past year, IREDA’s stock has declined by 33.55%, a stark contrast to the Sensex’s positive return of 6.14% during the same period. The stock’s 52-week high was Rs.208.85, highlighting the extent of the recent correction. Furthermore, the company has underperformed the BSE500 index across multiple time frames — one year, three years, and the last three months — indicating a persistent lag in market performance relative to peers.

Within the Finance and NBFC sector, the stock’s underperformance is notable, especially given the sector’s overall decline of 2.82% on the day. This relative weakness has contributed to the stock’s downgrade in rating from Hold to Sell as of 11 Nov 2025, with a current Mojo Score of 43.0 and a Market Cap Grade of 2, reflecting concerns about its market standing and investor sentiment.

Shareholding and Institutional Interest

Despite the company’s sizeable operations, domestic mutual funds hold a relatively small stake of just 0.42%. Given that mutual funds typically conduct thorough research and maintain significant positions in companies they favour, this limited holding may indicate a cautious stance towards the stock’s current valuation or business outlook.

This restrained institutional interest aligns with the downgrade to a Sell rating and the Mojo Grade of 43.0, reflecting a tempered market view on the stock’s near-term prospects.

Financial Performance Highlights

IREDA’s long-term fundamentals present a more nuanced picture. The company has demonstrated robust growth in key financial metrics over recent years. Net sales have expanded at a compound annual growth rate (CAGR) of 32.07%, while operating profits have grown at a CAGR of 26.47%. These figures indicate a strong underlying business trajectory despite recent stock price weakness.

In the quarter ended December 2025, the company reported its highest-ever net sales of Rs.2,130.19 crore and a record PBDIT of Rs.1,951.00 crore. Additionally, the debt-to-equity ratio stood at a low 5.41 times for the half-year period, signalling a relatively conservative capital structure within the sector context.

Valuation and Profitability Metrics

IREDA’s return on equity (ROE) is 14.6%, which is considered attractive within the Finance sector. The stock trades at a price-to-book value of 2.9, indicating a premium valuation compared to its peers’ historical averages. Over the past year, while the stock price declined by 33.55%, the company’s profits increased by 22.7%, resulting in a price/earnings to growth (PEG) ratio of 1.1. This suggests that the market’s valuation contraction has outpaced the company’s earnings growth.

Sector and Market Dynamics

The Finance and NBFC sector has experienced a decline of 2.82% on the day, reflecting broader market pressures. IREDA’s underperformance relative to its sector peers and the Sensex highlights the challenges faced by the company’s stock in the current environment. The Sensex itself is trading below its 50-day moving average, although the 50-day average remains above the 200-day average, indicating mixed signals in the broader market trend.

Within this context, IREDA’s stock remains under pressure, with its technical indicators pointing to continued weakness in the near term.

Summary of Key Metrics

To summarise, Indian Renewable Energy Development Agency Ltd’s stock has reached a 52-week low of Rs.124.2, reflecting a 33.55% decline over the past year. The company’s financials show strong growth in sales and operating profits, with record quarterly results reported in December 2025. However, the stock’s valuation contraction and limited institutional interest have contributed to its downgrade to a Sell rating and a Mojo Grade of 43.0.

The stock’s trading below all major moving averages and its underperformance relative to sector and benchmark indices underscore the current challenges faced by the share price.

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