IRCON - Technical Analysis with Chart Patterns & Indicators

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

Technical Rating: 3.6

📉 IRCON is currently consolidating with weak short-term momentum and declining volume, though long-term fundamentals remain stable.

📊 Technical Analysis

• Trend Status: Consolidating — price is below both 50-DMA and 200-DMA, indicating lack of trend strength.
• Moving Averages: Price ₹169 is below 50-DMA (₹174) and 200-DMA (₹183), suggesting bearish bias.
• RSI (44.4): Neutral to bearish zone, indicating weak momentum and limited buying pressure.
• MACD (-1.31): Bearish crossover, confirming short-term weakness.
• Bollinger Bands: Price near lower band, suggesting support but no breakout signal.
• Volume: Current volume (13.4L) is significantly below weekly average (20.2L), showing reduced participation.

🎯 Entry & Exit Zones

• Support Levels: ₹165, ₹160, ₹150
• Resistance Levels: ₹174 (50-DMA), ₹183 (200-DMA), ₹190
• Optimal Entry: ₹165–₹168 (on pullback near support)
• Exit Target: ₹183–₹190 (resistance zone)

✅ Positive

• Zero debt-to-equity ratio reflects strong financial discipline.
• ROCE (14.7%) and ROE (11.6%) indicate decent capital efficiency.
• Dividend yield of 1.54% adds passive income appeal.
• FII and DII holdings increased slightly, showing cautious institutional interest.

⚠️ Limitation

• MACD and RSI indicate weak momentum and bearish signals.
• Price trading below key moving averages, signaling technical weakness.
• PEG ratio of 2.53 suggests overvaluation relative to growth.

📉 Company Negative News

• Quarterly PAT declined from ₹218 Cr to ₹151 Cr, indicating margin pressure.
• Stock is down 29% from its 52-week high of ₹238, reflecting underperformance.

📈 Company Positive News

• EPS of ₹7.57 and consistent dividend payout support long-term stability.
• Institutional accumulation visible through marginal increases in FII and DII holdings.

🏭 Industry

• Railway infrastructure and engineering sector remains vital with ongoing government investment.
• Industry P/E (22.1) aligns closely with IRCON’s (22.4), suggesting fair valuation.

🧾 Conclusion

• IRCON is consolidating with weak technical momentum and declining volume.
• Entry near ₹165–₹168 could offer value with targets around ₹183–₹190.
• Investors should monitor earnings trajectory and volume trends for signs of reversal.