Indian Renewable Energy Development Agency Stock Hits 52-Week Low at Rs.131.45

6 hours ago

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Indian Renewable Energy Development Agency (IREDA) has reached a new 52-week low of Rs.131.45, marking a significant decline amid a broader market environment where the Sensex showed a modest downturn. The stock has experienced a sustained downward trend over the past eight trading sessions, reflecting a cumulative return of -8.8% during this period.

Recent Price Movement and Market Context

On 8 December 2025, Indian Renewable Energy Development Agency's share price touched Rs.131.45, the lowest level recorded in the past year. This decline comes despite the Sensex opening flat and subsequently falling by 242.55 points, or 0.39%, to close at 85,382.29. Notably, the Sensex remains close to its 52-week high of 86,159.02, trading just 0.91% below that peak and maintaining a position above its 50-day moving average, which itself is above the 200-day moving average, signalling a generally bullish market trend.

In contrast, Indian Renewable Energy Development Agency's stock has underperformed its sector, registering a day change of -1.20%, which is 0.29% below the sector's performance. The stock is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, indicating a persistent weakness in price momentum.

Performance Over the Past Year

Over the last twelve months, the stock has recorded a return of -40.58%, a stark contrast to the Sensex's positive return of 4.51% over the same period. The 52-week high for the stock was Rs.234.35, highlighting the extent of the decline from its peak. This underperformance extends beyond the one-year horizon, with the stock also lagging behind the BSE500 index over the last three years, one year, and three months.

Shareholding and Market Interest

Despite the company's considerable size within the finance sector, domestic mutual funds hold a relatively small stake of 0.77%. Given that domestic mutual funds typically conduct thorough research on companies, this limited holding may reflect a cautious stance regarding the stock's current valuation or business outlook.

Financial Metrics and Growth Trends

Indian Renewable Energy Development Agency has demonstrated strong long-term fundamental growth. Net sales have expanded at a compound annual growth rate (CAGR) of 33.10%, while operating profits have grown at a CAGR of 36.14%. The company reported its highest quarterly net sales of Rs.2,057.28 crore in the September 2025 quarter, alongside a profit after tax (PAT) of Rs.549.33 crore, which represents a 40.7% increase compared to the average of the previous four quarters.

The debt-equity ratio for the half-year period stands at 5.41 times, the lowest recorded for the company, indicating a relatively stable capital structure. Return on equity (ROE) is reported at 13.3%, and the stock trades at a price-to-book value of 2.9, which is lower than the average historical valuations of its peers in the finance sector.

Valuation and Profitability Considerations

While the stock has generated a negative return of 40.51% over the past year, the company's profits have risen by approximately 36% during the same period. This divergence is reflected in a price/earnings to growth (PEG) ratio of 0.7, suggesting that the market valuation does not fully align with the company's profit growth trajectory.

Sector and Market Comparison

Within the finance sector, Indian Renewable Energy Development Agency's stock is trading at a discount relative to its peers' average historical valuations. The broader market, as represented by the Sensex, continues to show resilience, trading above key moving averages and near its 52-week high, underscoring the stock's relative underperformance.

Summary of Key Data Points

To summarise, Indian Renewable Energy Development Agency's stock has reached Rs.131.45, its lowest level in 52 weeks, following a sustained decline over eight consecutive sessions. The stock's performance contrasts with the broader market's relative strength, as the Sensex remains near its yearly peak. Despite the stock's price weakness, the company exhibits solid long-term growth in sales and profits, alongside a manageable debt profile and attractive valuation metrics compared to sector peers.

These factors provide a comprehensive view of the stock's current position within the market and its financial standing as of December 2025.

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