IRCON International shares hit 52-week high; what should investors do?

IRCON International shares hit a fresh 52-week high today amid a rally in the broader markets. IRCON International stock rose up to 12% to Rs 78.30 against the previous close of Rs 69.91 on BSE. The stock opened higher at Rs 70.01 today. IRCON International shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Market cap of the firm rose to Rs 7259.84 crore on BSE. The stock has gained 33% in the last eight sessions. The Indian Railway firm has gained 84.13% in a year and risen 29.01% in 2023.

In terms of technicals, the relative strength index (RSI) of the stock stands at 81.4, signaling it's trading in the strongly overbought zone. 

IRCON International shares have a beta of 1, indicating average volatility in a year. IRCON International shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

"IRCON stock is looking attractive at the current level with around Rs 4,000 crore of cash from a market cap size of more than Rs 6,000 crore," said AK Prabhakar, Head of Capital, IDBI Capital. 

Abhijeet from Tips2trades said, "Ircon International has been very bullish but also overbought on the daily charts with next resistance at Rs 79.45. Investors should be booking profits at current levels and wait for a dip near support of Rs 57-60 to buy for better returns."

IRCON International logged a 40.2 per cent rise in consolidated profit after tax to Rs 190 crore for the quarter ended December 31, 2022. The company had posted a consolidated profit after tax of Rs 135.5 crore in the year-ago period. Consolidated income from operations during the third quarter rose to Rs 2,346.51 crore from Rs 1,761.85 crore a year ago.

IRCON International is an engineering and construction company with specialisation in transport infrastructure. The PSU was established in 1976. 

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