IRCON - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 2.9
| Stock Code | IRCON | Market Cap | 11,684 Cr. | Current Price | 124 ₹ | High / Low | 226 ₹ |
| Stock P/E | 18.1 | Book Value | 68.7 ₹ | Dividend Yield | 2.13 % | ROCE | 14.7 % |
| ROE | 11.6 % | Face Value | 2.00 ₹ | DMA 50 | 147 ₹ | DMA 200 | 165 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.08 % | PAT Qtr | 91.2 Cr. | PAT Prev Qtr | 185 Cr. |
| RSI | 32.4 | MACD | -6.95 | Volume | 28,02,855 | Avg Vol 1Wk | 39,05,523 |
| Low price | 124 ₹ | High price | 226 ₹ | PEG Ratio | 2.05 | Debt to equity | 0.00 |
| 52w Index | 0.46 % | Qtr Profit Var | -35.2 % | EPS | 6.85 ₹ | Industry PE | 15.5 |
📊 IRCON stock currently shows weak technical momentum for swing trading. The RSI at 32.4 indicates oversold conditions, while the MACD (-6.95) confirms bearish sentiment. The price is trading well below both the 50 DMA (147 ₹) and 200 DMA (165 ₹), reflecting a strong downtrend. Fundamentally, the company has decent ROCE (14.7%) and ROE (11.6%), with zero debt, which is a positive. However, quarterly profits have dropped sharply (PAT down from 185 Cr. to 91.2 Cr.), and the PEG ratio (2.05) suggests growth is priced expensively. Valuation is slightly above industry average (P/E 18.1 vs 15.5), making it less attractive.
💡 Optimal Entry Price: Around 120–125 ₹, near current levels, but only if reversal signals appear with volume support.
🚪 Exit Strategy (if already holding): Consider exiting near 140–145 ₹ if a rebound occurs, or cut losses if the price falls below 118 ₹ with strong volume.
Positive
- Zero debt-to-equity ratio indicates strong financial stability.
- ROCE (14.7%) and ROE (11.6%) show decent efficiency and profitability.
- Dividend yield of 2.13% provides income support.
- Book value (68.7 ₹) offers some valuation cushion.
Limitation
- Price trading well below 50 DMA and 200 DMA confirms bearish trend.
- Quarterly profit dropped significantly (-35.2%).
- PEG ratio of 2.05 indicates growth is expensive.
- Valuation slightly above industry average (P/E 18.1 vs 15.5).
Company Negative News
- Sharp decline in quarterly profits (185 Cr. to 91.2 Cr.).
- FII holdings decreased (-0.07%), showing reduced foreign confidence.
Company Positive News
- DII holdings increased (+0.08%), showing domestic investor support.
- Dividend yield of 2.13% remains attractive.
- Zero debt strengthens financial resilience.
Industry
- Industry P/E at 15.5 is slightly lower than IRCON’s 18.1, suggesting peers are more reasonably valued.
- Infrastructure sector remains cyclical, influenced by government contracts and project execution.
Conclusion
⚠️ IRCON is currently not an ideal candidate for swing trading due to weak technicals and declining profits. While zero debt and decent ROCE/ROE are positives, the bearish trend and expensive growth valuation make it risky. Traders should wait for reversal signals before entering. If already holding, exit on rebounds near 140–145 ₹ and protect downside below 118 ₹.