Stock Performance and Market Context
On 13 Feb 2026, IREDA’s share price fell by 2.63% during the trading session, underperforming its sector by 1.22%. The stock reached an intraday low of Rs.121.6, which is the lowest level recorded in the past year. This marks the third consecutive day of decline, with the stock losing 5.49% over this period. The current price is substantially below its 52-week high of Rs.187.75, representing a drop of approximately 35.3% from that peak.
Technical indicators show that the stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This broad weakness in technical momentum signals sustained selling pressure and a lack of short- to medium-term support levels.
In comparison, the Sensex opened lower by 772.19 points and was trading at 82,847.69, down 0.99% on the day. Despite this, the Sensex remains only 4% below its own 52-week high of 86,159.02. The index’s 50-day moving average remains above its 200-day moving average, indicating a generally positive medium-term trend for the broader market, contrasting with IREDA’s underperformance.
Long-Term and Recent Returns
Over the last year, IREDA’s stock has delivered a negative return of 31.03%, significantly lagging the Sensex’s positive 8.79% gain over the same period. The stock has also underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months. This consistent underperformance highlights challenges in maintaining investor confidence and market valuation relative to broader benchmarks.
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Shareholding and Market Perception
Domestic mutual funds hold a relatively small stake in IREDA, accounting for only 0.42% of the company’s shares. Given the capacity of these funds to conduct detailed research and due diligence, this limited exposure may reflect a cautious stance towards the stock’s current valuation or business outlook. The company’s Mojo Score stands at 43.0, with a Mojo Grade of Sell, downgraded from Hold on 11 Nov 2025, indicating a less favourable market sentiment.
The company’s market capitalisation grade is rated at 2, suggesting a smaller market cap relative to peers, which may contribute to liquidity and valuation challenges.
Financial Performance Highlights
Despite the stock’s price weakness, IREDA has demonstrated strong fundamental growth over the long term. Net sales have increased at a compound annual growth rate (CAGR) of 32.07%, while operating profits have grown at a CAGR of 26.47%. The company reported its highest quarterly net sales of Rs.2,130.19 crores and a peak PBDIT of Rs.1,951.00 crores in the December 2025 quarter. Additionally, the debt-to-equity ratio at half-year stood at a low 5.41 times, reflecting a relatively stable capital structure for the sector.
Return on equity (ROE) is recorded at 14.6%, and the stock trades at a price-to-book value of 2.7, which is a premium compared to its peers’ historical averages. The company’s profits have risen by 22.7% over the past year, despite the stock’s negative price returns, resulting in a PEG ratio of 1.1, indicating valuation in line with earnings growth.
Valuation and Sector Comparison
While the stock is trading at a premium valuation relative to its peers, this has not translated into positive price momentum. The Finance sector, in which IREDA operates, has seen mixed performance, with the stock underperforming its sector peers by 1.22% on the day of the new low. The broader market’s resilience contrasts with the stock’s downward trajectory, underscoring company-specific factors influencing investor sentiment.
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Summary of Key Metrics
To summarise, Indian Renewable Energy Development Agency Ltd’s stock has reached a 52-week low of Rs.121.6, reflecting a sustained period of price decline and underperformance relative to the broader market and sector indices. The stock’s technical indicators remain weak, trading below all major moving averages, while its long-term financial fundamentals show robust growth in sales and profits. The company’s valuation metrics indicate a premium pricing relative to peers, despite limited institutional holding and a recent downgrade in market sentiment.
These factors collectively illustrate the complex interplay between market valuation, investor positioning, and company performance that has led to the current share price level.
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