IRCON International shares in focus on fresh order win

Shares of IRCON International, will be in focus on Tuesday as the Navratna public-sector enterprise specialising in turnkey construction, particularly in railways and highways, has received a significant order valued at Rs 127.80 crore from S&T (Construction) of the North Western Railway, Indian Railways.

The stock ended 3.43%higher at Rs 4780 on April 11. Market cap of the firm stood at Rs 1.69 lakh crore.  

Total 0.87 lakh shares changed hands amounting to a turnover of Rs 41.29 crore on BSE in the previous session.

In terms of technicals, the relative strength index (RSI) of IRCON International stood at 44.4, signaling it's trading neither in the overbought nor in the oversold zone. IRCON International stock has a one-year beta of 1.8, signaling very high volatility during the period.IRCON International shares have risen 19% in a year and lost 42% in six months.

The project involves the design, manufacture, supply, installation, testing, and commissioning of a microprocessor-based EI system. This ambitious project is set to be executed within 24 months from the issuance of the letter of acceptance. It encompasses work across 20 stations in the Ajmer Division, featuring automatic block signalling and related signalling and telecom systems.This order comes amid challenging financial results for IRCON. The company reported a 64.81% decline in consolidated net profit, down to Rs 86.10 crore for the quarter ending in December 2024, compared to the same period in the previous year. Revenue from operations also saw a decrease of 10.81%, totalling Rs 2,612.86 crore. Despite these financial setbacks, the new order is expected to enhance IRCON's portfolio and bolster its operations both domestically and internationally. IRCON operates across multiple countries, including Malaysia, Nepal, Bangladesh, South Africa, Algeria, Myanmar, and Sri Lanka.

IRCON's recent financial performance highlights the competitive challenges it faces in the sector, but this new order might signal a positive trajectory for future growth. The company's ability to secure large-scale projects remains a testament to its expertise and standing within the industry, potentially paving the way for recovery in the upcoming quarters.

The stock market will remain closed today, 14 April 2025, in observance of Dr. Babasaheb Ambedkar Jayanti, which may affect immediate market reactions to this announcement.

Ircon International is a railway construction company, which has diversified progressively to roads, buildings, electrical substation and distribution, airport construction, commercial complexes as well as metro rail works.