⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
IRCON - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.7
| Stock Code | IRCON | Market Cap | 12,200 Cr. | Current Price | 130 ₹ | High / Low | 226 ₹ |
| Stock P/E | 18.9 | Book Value | 68.7 ₹ | Dividend Yield | 2.04 % | ROCE | 14.7 % |
| ROE | 11.6 % | Face Value | 2.00 ₹ | DMA 50 | 148 ₹ | DMA 200 | 166 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.08 % | PAT Qtr | 91.2 Cr. | PAT Prev Qtr | 185 Cr. |
| RSI | 36.5 | MACD | -6.61 | Volume | 46,35,245 | Avg Vol 1Wk | 40,64,353 |
| Low price | 124 ₹ | High price | 226 ₹ | PEG Ratio | 2.14 | Debt to equity | 0.00 |
| 52w Index | 5.87 % | Qtr Profit Var | -35.2 % | EPS | 6.85 ₹ | Industry PE | 15.2 |
📊 Financial Overview
- Revenue & Profitability: PAT fell from ₹185 Cr. to ₹91.2 Cr. (QoQ), showing earnings pressure.
- Margins: ROE at 11.6% and ROCE at 14.7% are decent, reflecting moderate profitability and efficiency.
- Debt: Debt-to-equity ratio of 0.00 indicates a debt-free balance sheet, which is a strong positive.
- Cash Flow: EPS of ₹6.85 is modest, but dividend yield of 2.04% adds shareholder value.
💹 Valuation Metrics
- P/E Ratio: 18.9 vs Industry PE of 15.2 → slightly overvalued compared to peers.
- P/B Ratio: Price ₹130 vs Book Value ₹68.7 → trading at a premium, reflecting investor optimism.
- PEG Ratio: 2.14 → suggests valuation is expensive relative to growth.
- Intrinsic Value: Fundamentally stable, but current valuation is stretched given profit decline.
🏢 Business Model & Competitive Advantage
- IRCON International operates in infrastructure development, primarily railways, highways, and construction projects.
- Competitive advantage lies in government contracts and strong execution capabilities, but earnings volatility reduces resilience.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: ₹120–130 range looks safer given current valuation and technical weakness.
- Long-Term Holding: Suitable for investors seeking stable infrastructure exposure. Monitor profitability trends and order book strength.
✅ Positive
- Debt-free balance sheet (Debt-to-equity 0.00).
- Decent ROE (11.6%) and ROCE (14.7%).
- Dividend yield of 2.04% provides steady income.
⚠️ Limitation
- Quarterly PAT dropped significantly (₹185 Cr. to ₹91.2 Cr.).
- P/E ratio (18.9) slightly above industry average.
- PEG ratio (2.14) suggests valuation is expensive relative to growth.
📉 Company Negative News
- Quarterly profit variation (-35.2%) shows earnings weakness.
- FII holdings decreased slightly (-0.07%).
- Stock trading below DMA 50 & DMA 200, indicating bearish momentum.
📈 Company Positive News
- DII holdings increased (+0.08%), showing domestic institutional support.
- Debt-free status enhances financial stability.
🏦 Industry
- Industry PE at 15.2 highlights sector trades at lower multiples than IRCON.
- Infrastructure sector growth supported by government spending on railways and highways.
🔎 Conclusion
- IRCON International is financially stable with no debt and decent returns, but faces earnings volatility.
- Entry around ₹120–130 is safer for long-term investors.
- Hold for dividend yield and infrastructure exposure, but monitor profitability consistency and valuation risks.