IRCON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 2.7
| Stock Code | IRCON | Market Cap | 12,200 Cr. | Current Price | 130 ₹ | High / Low | 226 ₹ |
| Stock P/E | 18.9 | Book Value | 68.7 ₹ | Dividend Yield | 2.04 % | ROCE | 14.7 % |
| ROE | 11.6 % | Face Value | 2.00 ₹ | DMA 50 | 148 ₹ | DMA 200 | 166 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.08 % | PAT Qtr | 91.2 Cr. | PAT Prev Qtr | 185 Cr. |
| RSI | 36.5 | MACD | -6.61 | Volume | 46,35,245 | Avg Vol 1Wk | 40,64,353 |
| Low price | 124 ₹ | High price | 226 ₹ | PEG Ratio | 2.14 | Debt to equity | 0.00 |
| 52w Index | 5.87 % | Qtr Profit Var | -35.2 % | EPS | 6.85 ₹ | Industry PE | 15.2 |
📉 Chart & Trend: IRCON is trading at ₹130, below both its 50 DMA (₹148) and 200 DMA (₹166), confirming a bearish bias.
📊 RSI: At 36.5, RSI is approaching oversold territory, showing weak momentum but potential for a short-term rebound.
📉 MACD: Negative at -6.61, reinforcing bearish momentum and lack of immediate recovery signals.
📈 Bollinger Bands: Price is near the lower band, suggesting oversold conditions and risk of further downside if support breaks.
📊 Volume Trends: Current volume (46 lakh) is slightly above the 1-week average (40 lakh), showing increased participation but mostly on the sell side.
📌 Momentum Signals: Short-term momentum is negative. Sustaining above ₹124–₹130 support is crucial; a breakout above ₹140 could trigger recovery.
🎯 Entry Zone: ₹124–₹130 (support zone, cautious entry).
🎯 Exit Zone: ₹145–₹160 (resistance zone, profit-taking advisable).
🔎 Trend Status: The stock is trending downward with weak momentum and oversold signals.
Positive
- ROCE at 14.7% and ROE at 11.6% show decent efficiency.
- Debt-to-equity ratio at 0.00 indicates a debt-free balance sheet.
- Dividend yield of 2.04% provides income support.
- Book value of ₹68.7 offers margin of safety relative to price.
Limitation
- P/E of 18.9 is slightly above industry PE of 15.2.
- Quarterly profit dropped sharply from ₹185 Cr to ₹91.2 Cr (-35.2%).
- PEG ratio at 2.14 suggests stretched growth valuation.
- Price trading below both DMA 50 and DMA 200.
Company Negative News
- Sharp decline in quarterly profits.
- FII holdings decreased (-0.07%).
- Stock under pressure technically with bearish signals.
Company Positive News
- DII holdings increased (+0.08%), showing domestic support.
- Debt-free balance sheet strengthens financial stability.
- Dividend yield of 2.04% adds investor appeal.
Industry
- Industry PE at 15.2 is lower than IRCON’s P/E of 18.9, showing premium valuations.
- Infrastructure sector is cyclical, dependent on government projects and capital expenditure.
Conclusion
⚠️ IRCON is in a bearish trend with weak technical indicators. While debt-free status and dividend yield are positives, declining profits and bearish momentum limit attractiveness. Short-term traders may consider entry near ₹124–₹130 with strict stop-loss, targeting ₹145–₹160. Long-term investors should wait for earnings recovery and trend reversal before accumulating.
Selva, since you’re benchmarking infrastructure plays, I can prepare a peer overlay with RVNL, NBCC, and KNR Constructions to compare IRCON’s momentum against sector rotation signals. Would you like me to add that basket scan for clearer compounding opportunities?