IRCON - Swing Trade Analysis with AI Signals
Back to ListSwing Trade Rating: 3.5
| Stock Code | IRCON | Market Cap | 14,813 Cr. | Current Price | 157 ₹ | High / Low | 226 ₹ |
| Stock P/E | 21.3 | Book Value | 68.7 ₹ | Dividend Yield | 1.68 % | ROCE | 14.7 % |
| ROE | 11.6 % | Face Value | 2.00 ₹ | DMA 50 | 163 ₹ | DMA 200 | 173 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.08 % | PAT Qtr | 185 Cr. | PAT Prev Qtr | 151 Cr. |
| RSI | 46.1 | MACD | -2.37 | Volume | 29,63,911 | Avg Vol 1Wk | 48,38,050 |
| Low price | 134 ₹ | High price | 226 ₹ | PEG Ratio | 2.42 | Debt to equity | 0.00 |
| 52w Index | 25.4 % | Qtr Profit Var | -8.68 % | EPS | 7.38 ₹ | Industry PE | 17.4 |
📊 IRCON shows moderate potential for swing trading. The stock is priced at ₹157, below both its 50 DMA (₹163) and 200 DMA (₹173), indicating short-term weakness. Technical indicators (RSI 46.1, MACD negative) suggest consolidation or mild bearishness. Strong fundamentals like zero debt and decent ROCE/ROE provide stability, but declining quarterly profits and overvaluation compared to industry PE limit upside.
💡 Optimal Entry Price: Around ₹150–153 (near support zone).
📈 Exit Strategy: If already holding, consider exiting near ₹170–175 resistance levels, or maintain a stop-loss around ₹148.
✅ Positive
- Debt-to-equity ratio of 0.00 shows zero leverage risk.
- ROCE of 14.7% and ROE of 11.6% indicate decent efficiency.
- Dividend yield of 1.68% provides steady shareholder returns.
- EPS of ₹7.38 reflects consistent earnings generation.
⚠️ Limitation
- P/E of 21.3 is higher than industry average of 17.4, suggesting overvaluation.
- PEG ratio of 2.42 indicates expensive growth valuation.
- Stock trading below both 50 DMA and 200 DMA signals weakness.
- Volume (29.6 lakh) is lower than weekly average, showing reduced participation.
📉 Company Negative News
- Quarterly PAT declined from ₹151 Cr. to ₹185 Cr. with variation of -8.68%.
- FII holdings decreased (-0.07%), reflecting reduced foreign investor confidence.
- MACD at -2.37 shows bearish crossover momentum.
📈 Company Positive News
- DII holdings increased (+0.08%), showing domestic institutional support.
- Strong fundamentals with zero debt provide financial stability.
- Dividend yield of 1.68% adds to investor appeal.
🏦 Industry
- Industry P/E at 17.4 is lower than IRCON’s 21.3, suggesting relative overvaluation.
- Infrastructure sector benefits from government spending and railway development projects.
🔎 Conclusion
IRCON earns a swing trade rating of 3.5. Entry near ₹150–153 offers a safer risk-reward setup, while profit booking should be considered near ₹170–175. Traders should remain cautious due to weak technicals and declining profits, but strong fundamentals and zero debt support limited upside opportunities.