⚠ 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: 3.9
| Stock Code | IRCON | Market Cap | 14,468 Cr. | Current Price | 154 ₹ | High / Low | 226 ₹ |
| Stock P/E | 20.8 | Book Value | 68.7 ₹ | Dividend Yield | 1.72 % | ROCE | 14.7 % |
| ROE | 11.6 % | Face Value | 2.00 ₹ | DMA 50 | 163 ₹ | DMA 200 | 174 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.08 % | PAT Qtr | 185 Cr. | PAT Prev Qtr | 151 Cr. |
| RSI | 41.6 | MACD | -2.00 | Volume | 93,18,545 | Avg Vol 1Wk | 55,35,772 |
| Low price | 134 ₹ | High price | 226 ₹ | PEG Ratio | 2.36 | Debt to equity | 0.00 |
| 52w Index | 21.3 % | Qtr Profit Var | -8.68 % | EPS | 7.38 ₹ | Industry PE | 16.9 |
📊 Core Financials
- Revenue & Profitability: PAT rose from 151 Cr. to 185 Cr. QoQ, but quarterly profit variation shows -8.68%, indicating some inconsistency.
- Margins: ROE at 11.6% and ROCE at 14.7% are healthy, reflecting decent efficiency and shareholder returns.
- Debt: Debt-to-equity ratio of 0.00 highlights a debt-free balance sheet, providing strong financial stability.
- Cash Flow: Dividend yield of 1.72% offers a reasonable payout to shareholders.
💹 Valuation Indicators
- P/E Ratio: 20.8 vs Industry PE of 16.9 → slightly overvalued compared to peers.
- P/B Ratio: Current Price (154 ₹) / Book Value (68.7 ₹) ≈ 2.24, moderate valuation.
- PEG Ratio: 2.36 suggests valuation is stretched relative to growth prospects.
- Intrinsic Value: Current price near support (134 ₹) offers potential entry opportunity.
🏦 Business Model & Competitive Advantage
- IRCON International operates in infrastructure development, primarily railways, highways, and construction projects.
- Competitive advantage lies in government contracts, strong execution capabilities, and debt-free status.
- Overall health is stable, but growth prospects need to align with valuation multiples.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive entry between 140 ₹ – 150 ₹, near support levels.
- Long-Term Holding: Suitable for investors seeking stable infrastructure exposure, with moderate returns and strong balance sheet safety.
✅ Positive
- Debt-free balance sheet (Debt-to-equity 0.00).
- Healthy ROE (11.6%) and ROCE (14.7%).
- Dividend yield of 1.72% provides shareholder reward.
⚠️ Limitation
- P/E (20.8) higher than industry average (16.9).
- PEG ratio (2.36) indicates valuation mismatch with growth.
- Quarterly profit variation (-8.68%) shows earnings inconsistency.
📉 Company Negative News
- FII holdings decreased (-0.07%), showing reduced foreign investor confidence.
- Stock trading below DMA 200 (174 ₹) indicates technical weakness.
📈 Company Positive News
- DII holdings increased (+0.08%), reflecting domestic institutional support.
- PAT improved QoQ from 151 Cr. to 185 Cr., showing operational strength.
🏭 Industry
- Industry PE at 16.9 is lower than IRCON’s valuation, highlighting slight overpricing.
- Infrastructure sector growth driven by government spending on railways and highways.
- IRCON benefits from strong government contracts and execution track record.
🔎 Conclusion
- IRCON offers stability with a debt-free balance sheet and decent return ratios.
- Valuation is slightly stretched, but entry near 140–150 ₹ provides a safer margin.
- Best suited for long-term investors seeking stable infrastructure exposure with moderate growth potential.
Would you like me to also prepare a comparative HTML report of IRCON versus IRB to highlight which infrastructure stock offers better value and stability?