IRCON - Technical Analysis with Chart Patterns & Indicators
Back to ListTechnical Rating: 3.4
| Stock Code | IRCON | Market Cap | 14,468 Cr. | Current Price | 154 ₹ | High / Low | 226 ₹ |
| Stock P/E | 20.8 | Book Value | 68.7 ₹ | Dividend Yield | 1.72 % | ROCE | 14.7 % |
| ROE | 11.6 % | Face Value | 2.00 ₹ | DMA 50 | 163 ₹ | DMA 200 | 174 ₹ |
| Chg in FII Hold | -0.07 % | Chg in DII Hold | 0.08 % | PAT Qtr | 185 Cr. | PAT Prev Qtr | 151 Cr. |
| RSI | 41.6 | MACD | -2.00 | Volume | 93,18,545 | Avg Vol 1Wk | 55,35,772 |
| Low price | 134 ₹ | High price | 226 ₹ | PEG Ratio | 2.36 | Debt to equity | 0.00 |
| 52w Index | 21.3 % | Qtr Profit Var | -8.68 % | EPS | 7.38 ₹ | Industry PE | 16.9 |
📊 Chart Patterns & Trend: IRCON is consolidating near the 154 ₹ zone. Price is trading below both the 50 DMA (163 ₹) and 200 DMA (174 ₹), indicating short-term weakness and medium-term resistance. Support is visible around 134–140 ₹.
📈 Moving Averages: Both 50 DMA and 200 DMA are acting as resistance. A sustained move above 165–170 ₹ would confirm bullish momentum.
📉 RSI: At 41.6, RSI is neutral-to-weak, suggesting limited buying strength and sideways consolidation.
📉 MACD: Negative (-2.00), showing bearish crossover and short-term weakness.
📊 Bollinger Bands: Price is near the lower band, reflecting oversold conditions. A rebound toward the mid-band (160–165 ₹) is possible.
📊 Volume Trends: Current volume (93 lakh) is higher than average weekly volume (55 lakh), showing active participation despite consolidation.
🎯 Entry Zone: 148–152 ₹ (support zone).
🎯 Exit Zone: 165–170 ₹ (resistance zone).
🔑 Stop Loss: 145 ₹ (below support).
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 1.72% adds income stability.
- EPS at 7.38 ₹ supports valuation strength.
Limitation
- Price trading below both 50 DMA and 200 DMA confirms short-term weakness.
- PEG ratio of 2.36 indicates limited growth-adjusted value.
- Stock P/E at 20.8 is higher than industry PE (16.9), suggesting premium valuation.
Company Negative News
- Quarterly profit variation (-8.68%) shows earnings pressure.
- FII holdings decreased (-0.07%), reflecting reduced foreign investor confidence.
Company Positive News
- Quarterly PAT improved from 151 Cr. to 185 Cr., showing earnings growth despite volatility.
- DII holdings increased (+0.08%), showing domestic institutional support.
- Strong 52-week performance with 21.3% index gain.
Industry
- Industry PE at 16.9 vs. stock PE at 20.8 highlights premium valuation.
- Infrastructure and railway construction sector supported by government spending and long-term projects.
Conclusion
⚖️ IRCON is in a consolidation phase with mild bearish signals (MACD negative, RSI weak). Medium-term outlook remains supported by strong fundamentals (debt-free, decent ROCE/ROE), but valuation is slightly stretched compared to peers. Entry near 148–152 ₹ offers margin of safety, while breakout above 165–170 ₹ could trigger momentum toward 180 ₹. Risk management is essential due to earnings pressure and resistance at higher levels.
Would you like me to extend this into a peer benchmarking overlay with other railway and infrastructure companies (like RVNL, NBCC, and RITES) to highlight sector rotation opportunities and relative strength?