IRCON - Swing Trade Analysis with AI Signals

Last Updated Time : 05 Nov 25, 7:43 am

Swing Trade Rating: 3.7

🚆 IRCON shows stable fundamentals but weak technical momentum. Entry near ₹165–₹167 is optimal. If already held, consider exiting near ₹185–₹190.

📈 Positive

• ROCE 14.7% and ROE 11.6% — decent capital efficiency
• EPS ₹7.57 and P/E 22.3 — fairly valued vs industry PE of 22.2
• Debt-to-equity 0.00 — zero leverage
• Dividend yield 1.58% — moderate income potential
• FII and DII holdings slightly increased — mild institutional interest

⚠️ Limitation

• MACD -1.48 and RSI 41.9 — weak technical momentum
• Trading below DMA 50 (₹174) and DMA 200 (₹183) — bearish bias
• PEG ratio 2.52 — valuation not fully justified by growth
• Volume below weekly average — cooling short-term interest

🚫 Company Negative News

• Sequential PAT dropped from ₹218 Cr. to ₹151 Cr. — down 14.7%
• Stock corrected ~29% from 52-week high of ₹238

✅ Company Positive News

• Strong order book in railway infrastructure and electrification projects
• Positive sentiment around government capex and railway modernization
• Analysts expect recovery in margins and execution in H2

🏭 Industry

• Railway infrastructure sector benefits from government investment, electrification, and logistics expansion
• IRCON trades in line with industry PE (22.2) — fairly valued

🧾 Conclusion

• IRCON is a fundamentally stable but technically weak swing candidate
• Best entry: ₹165–₹167 near support and oversold RSI
• If already held, exit near ₹185–₹190 — resistance zone below DMA 200
• Watch for MACD reversal and RSI >50 for confirmation

I can also compare IRCON with other railway infrastructure stocks to highlight stronger swing setups.