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IRCON - Technical Analysis with Chart Patterns & Indicators

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Rating: 3.8

Last Updated Time : 04 May 26, 11:57 am

Technical Rating: 3.8

Stock Code IRCON Market Cap 14,315 Cr. Current Price 152 ₹ High / Low 226 ₹
Stock P/E 22.2 Book Value 68.7 ₹ Dividend Yield 1.74 % ROCE 14.7 %
ROE 11.6 % Face Value 2.00 ₹ DMA 50 143 ₹ DMA 200 159 ₹
Chg in FII Hold 0.24 % Chg in DII Hold 0.07 % PAT Qtr 91.2 Cr. PAT Prev Qtr 185 Cr.
RSI 60.7 MACD 5.47 Volume 25,55,449 Avg Vol 1Wk 26,74,447
Low price 114 ₹ High price 226 ₹ PEG Ratio 2.52 Debt to equity 0.00
52w Index 33.9 % Qtr Profit Var -35.2 % EPS 6.85 ₹ Industry PE 18.5

📈 IRCON is trading above its 50 DMA (₹143) but below the 200 DMA (₹159), showing short-term strength but medium-term resistance. RSI at 60.7 indicates healthy momentum, while MACD at 5.47 confirms bullish crossover. Bollinger Bands suggest price moving toward the upper band, reflecting buying interest. Current volume (25.5 lakh) is close to average (26.7 lakh), showing steady participation.

🔑 Short-term momentum signals: Bullish bias, but sustainability depends on breaking above ₹159.

🎯 Entry Zone: ₹148–₹152 (support region)

🚪 Exit Zone: ₹165–₹170 (resistance region)

📊 Trend Status: Consolidating with bullish tilt

Positive

  • Trading above 50 DMA supports short-term strength
  • Strong ROCE (14.7%) and ROE (11.6%)
  • Dividend yield of 1.74% provides income cushion
  • Debt-free balance sheet (Debt-to-equity: 0.00)
  • FII (+0.24%) and DII (+0.07%) holdings increased

Limitation

  • Quarterly profit variation (-35.2%) shows earnings pressure
  • P/E (22.2) higher than industry average (18.5)
  • PEG ratio at 2.52 indicates stretched growth valuation
  • Price struggling to sustain above 200 DMA

Company Negative News

  • Quarterly PAT dropped from ₹185 Cr. to ₹91.2 Cr.
  • Valuation premium compared to industry peers

Company Positive News

  • Institutional holdings increased (FII +0.24%, DII +0.07%)
  • Strong fundamentals with debt-free structure
  • 52-week return of 33.9% reflects investor confidence

Industry

  • Industry PE at 18.5 highlights sector trading at lower multiples
  • Infrastructure sector supported by government spending on railways and construction projects

Conclusion

⚖️ IRCON shows short-term bullish signals with RSI above 60 and positive MACD, but faces resistance near 200 DMA. Entry near ₹148–₹152 offers favorable risk-reward, with profit booking around ₹165–₹170. Trend remains consolidative with bullish tilt, requiring sustained breakout above ₹159 for stronger upside momentum.

Would you like me to extend this into a swing-trade overlay comparing IRCON with peers like RVNL, IRFC, and IREDA to highlight sector-relative strength and positioning?

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