Stock Performance and Market Context
The stock has been under pressure for the past two trading sessions, registering a cumulative fall of 3.91%. Today’s decline of 1.93% further extended the downward momentum, with the stock underperforming its sector by 2.09%. Indian Renewable is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling a sustained bearish trend.
In contrast, the broader market index, Sensex, despite opening 265.21 points lower, closed down by 219.35 points at 83,749.08, a decline of 0.58%. Notably, Sensex remains just 2.88% shy of its 52-week high of 86,159.02 and has recorded a three-week consecutive rise, gaining 2.71% over this period. However, Sensex is trading below its 50-day moving average, though the 50DMA remains above the 200DMA, indicating mixed signals for the broader market.
Long-Term and Recent Returns
Over the past year, Indian Renewable Energy Development Agency Ltd has delivered a negative return of 28.85%, significantly lagging behind the Sensex’s positive 9.99% return. The stock’s 52-week high was Rs.187.75, highlighting the extent of the recent decline. This underperformance extends beyond the last year, with the stock also trailing the BSE500 index over the last three years, one year, and three months.
Fundamentals that don't lie! This Small Cap from Trading shows consistent growth and price strength over time. A reliable pick you can truly count on.
- - Strong fundamental track record
- - Consistent growth trajectory
- - Reliable price strength
Shareholding and Market Sentiment
Despite the company’s sizeable market presence, domestic mutual funds hold a relatively small stake of just 0.42%. Given that domestic mutual funds typically conduct thorough research and maintain significant positions in companies they favour, this limited holding 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. The Market Cap Grade is rated at 2, indicating a modest market capitalisation relative to peers. These ratings underscore the challenges faced by the stock in regaining investor confidence.
Financial Metrics and Growth Trends
Indian Renewable Energy Development Agency Ltd exhibits strong long-term fundamental strength, with a compound annual growth rate (CAGR) of 26.47% in operating profits. Net sales have grown at an annual rate of 32.07%, while operating profit has expanded at 26.47% per annum, reflecting healthy business growth over time.
Recent quarterly results for December 2025 showed net sales reaching a record high of Rs.2,130.19 crore, while profit before depreciation, interest, and taxes (PBDIT) also hit a peak of Rs.1,951.00 crore. The company’s debt-equity ratio at half-year stood at a low 5.41 times, indicating a manageable leverage position.
Valuation and Profitability
With a return on equity (ROE) of 14.6%, Indian Renewable Energy Development Agency Ltd maintains an attractive valuation profile, trading at a price-to-book value of 2.8. This valuation is at a premium compared to the average historical valuations of its peers. Over the past year, while the stock price has declined by 28.85%, the company’s profits have increased by 22.7%, resulting in a price/earnings to growth (PEG) ratio of 1.1.
Holding Indian Renewable Energy Development Agency Ltd from Finance? See if there's a smarter choice! SwitchER compares it with peers and suggests superior options across market caps and sectors!
- - Peer comparison ready
- - Superior options identified
- - Cross market-cap analysis
Summary of Current Concerns
The stock’s recent decline to a 52-week low reflects a combination of factors including underperformance relative to the broader market and sector, limited institutional holding by domestic mutual funds, and trading below all major moving averages. The downgrade in Mojo Grade from Hold to Sell further highlights the cautious market sentiment surrounding the stock.
While the company’s financials demonstrate solid growth in sales and profits, the stock price has not mirrored this performance, resulting in a divergence between fundamentals and market valuation. This gap may be influenced by investor preference for other opportunities within the finance sector or concerns about valuation premiums relative to peers.
Market and Sector Comparison
Compared to the Sensex, which has gained nearly 10% over the past year, Indian Renewable Energy Development Agency Ltd’s negative return of 28.85% stands out as a significant underperformance. The stock’s 52-week high of Rs.187.75 contrasts sharply with the current price of Rs.124.15, underscoring the extent of the recent correction.
The finance sector, within which the company operates, has seen mixed performance, with some peers maintaining stronger valuations and returns. Indian Renewable’s premium valuation metrics relative to peers may be a factor in the cautious stance adopted by investors and mutual funds alike.
Technical Indicators
The stock’s position below all key moving averages suggests a prevailing downward trend. The failure to hold above short-term averages such as the 5-day and 20-day moving averages indicates limited buying interest in the near term. The longer-term averages, including the 100-day and 200-day, also remain above the current price, reinforcing the bearish technical outlook.
Conclusion
Indian Renewable Energy Development Agency Ltd’s fall to a 52-week low of Rs.124.15 reflects a complex interplay of market dynamics, valuation considerations, and relative underperformance. Despite strong fundamental growth in sales and profits, the stock has not been able to sustain its price levels amid broader market pressures and sector-specific factors. The downgrade in Mojo Grade and limited mutual fund participation further illustrate the challenges faced by the stock in the current environment.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
