IRCON - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

🧠 My Thought Process

You're asking for a full-spectrum fundamental analysis of IRCON International Ltd, with a numeric rating and strategic investment guidance. I’ve weighed profitability, capital efficiency, valuation, and business durability, and incorporated recent market momentum and government infrastructure push.

📊 Fundamental Analysis of IRCON International Ltd

🔍 Core Financials

Profitability

PAT Qtr: ₹151 Cr vs ₹218 Cr — sequential decline, but annual performance remains solid.

EPS: ₹7.57 — decent, though not high-growth.

ROE: 11.6%, ROCE: 14.7% — respectable returns for a PSU infra player.

Leverage & Liquidity

Debt-to-equity: 0.00 — debt-free, excellent financial resilience.

Dividend Yield: 1.43% — consistent, with ₹1/share dividend declared in September

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Cash Flow & Stability

Strong order book supported by ₹77,000 Cr worth of railway projects in the Northeast

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Government holds 65.17% stake, reinforcing long-term stability

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📉 Valuation Indicators

Metric Value Interpretation

P/E Ratio 24.5 Slightly above industry PE of 20.6 — mildly overvalued

P/B Ratio ~2.8 Reasonable given ROE and asset-light model

PEG Ratio 2.78 Elevated — growth not justifying price

Intrinsic Value ~₹170–₹180 Slightly below current price — limited upside

🛤️ Business Model & Competitive Edge

Segment Focus: Railway infrastructure, highways, bridges, and electrification — core infra segments.

Moat: Navratna PSU status, turnkey execution, and international footprint.

Growth Drivers

Fresh contract wins and project execution in Mizoram and Manipur

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Strong technical breakout above ₹183, with upside targets of ₹213–₹225

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Expansion into green infrastructure and metro rail projects.

📈 Technical & Entry Guidance

Current Price: ₹186

DMA 50/200: ₹177 / ₹186 — trading at long-term average.

RSI: 62.7 — mildly bullish.

MACD: 2.44 — positive momentum.

🎯 Entry Zone

Ideal Buy Range: ₹172–₹180 — near support levels.

Stop Loss: ₹168

Target: ₹213–₹225 in medium term

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🕰️ Long-Term Holding Outlook

Hold if invested: Strong fundamentals, zero debt, and government backing support long-term value.

Buy on dips: Preferably near ₹175 zone.

Growth Triggers: Infra push, railway electrification, and international expansion.

⭐ Fundamental Rating

4.2

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Business Today | MSN

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CNBCTV18

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The Times of India | MSN

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www.businesstoday.in

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