IRCON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.5
| Stock Code | IRCON | Market Cap | 13,137 Cr. | Current Price | 140 ₹ | High / Low | 226 ₹ |
| Stock P/E | 21.2 | Book Value | 70.5 ₹ | Dividend Yield | 1.90 % | ROCE | 12.4 % |
| ROE | 9.61 % | Face Value | 2.00 ₹ | DMA 50 | 145 ₹ | DMA 200 | 157 ₹ |
| Chg in FII Hold | 0.24 % | Chg in DII Hold | 0.07 % | PAT Qtr | 192 Cr. | PAT Prev Qtr | 91.2 Cr. |
| RSI | 41.5 | MACD | -1.45 | Volume | 24,54,629 | Avg Vol 1Wk | 24,04,183 |
| Low price | 114 ₹ | High price | 226 ₹ | PEG Ratio | -2.93 | Debt to equity | 0.02 |
| 52w Index | 22.6 % | Qtr Profit Var | -12.0 % | EPS | 6.58 ₹ | Industry PE | 17.1 |
📉 IRCON is trading below both its 50 DMA (₹145) and 200 DMA (₹157), reflecting technical weakness. RSI at 41.5 indicates bearish momentum, while MACD is negative (-1.45), confirming downward bias. Bollinger Bands show price leaning toward the lower band, suggesting oversold conditions. Current volume (24.5 lakh) is in line with average (24.0 lakh), showing steady participation but no breakout strength.
🔑 Short-term momentum signals: Weak, with limited upside unless price reclaims ₹145–₹150 zone.
🎯 Entry Zone: ₹135–₹140 (support region)
🚪 Exit Zone: ₹155–₹160 (resistance region)
📊 Trend Status: Consolidating with bearish tilt
Positive
- Debt-to-equity ratio at 0.02 highlights strong balance sheet
- Dividend yield of 1.90% provides income cushion
- Quarterly PAT improved from ₹91.2 Cr. to ₹192 Cr.
- FII (+0.24%) and DII (+0.07%) holdings increased
- Book value at ₹70.5 supports valuation floor
Limitation
- Trading below both 50 DMA and 200 DMA
- RSI below 45 indicates weak momentum
- Negative MACD confirms bearish crossover
- P/E (21.2) higher than industry average (17.1)
- PEG ratio (-2.93) highlights poor growth valuation
Company Negative News
- Quarterly profit variation (-12%) shows earnings pressure
- Valuation premium compared to industry peers
Company Positive News
- PAT doubled quarter-on-quarter (₹91.2 Cr. → ₹192 Cr.)
- Institutional holdings increased (FII +0.24%, DII +0.07%)
- Debt-free structure supports financial stability
Industry
- Industry PE at 17.1 highlights sector trading at lower multiples
- Infrastructure sector supported by government spending on railways and construction projects
Conclusion
⚖️ IRCON shows weak technical momentum with RSI below 45 and negative MACD. Entry is favorable near ₹135–₹140 with profit booking around ₹155–₹160. Trend remains consolidative with bearish tilt unless price sustains above 50 DMA (₹145) and 200 DMA (₹157). Fundamentals remain stable with debt-free balance sheet, but valuation is stretched relative to industry.
Would you like me to extend this into a swing-trade overlay comparing IRCON’s technicals against peers like RVNL, IRFC, and IREDA to highlight sector-relative strength and positioning?