Stock Snapshot
Price Performance
Recommendation Rationale
Growth opportunity with execution challenges.
Basis of our Recommendation
IRCON International is experiencing operational challenges with declining revenue and margins, which have negatively impacted market perception. However, there are signs of recovery in order inflows, suggesting potential for future growth if execution improves.
Why We Like This Stock
- Signs of recovery in order inflows
- Potential for future growth if execution improves
Things To Watch Out For
- Declining revenue and margins
- Negative market perception
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 12,514 | 10,760 | 8,071 | 6,847 | 6,397 |
| Profit Before Tax (Cr.) | 1,230 | 889 | 766 | 614 | 584 |
| PBT Margin | 9.8% | 8.3% | 9.5% | 9.0% | 9.1% |
| Net Profit (Cr.) | 900 | 642 | 553 | 442 | 420 |
| EPS | 9.6 | 6.8 | 5.9 | 4.7 | 4.5 |
Company Overview
Show Company Profile
Ircon International Limited, together with its subsidiaries, engages in the provision of construction services. It undertakes construction of new railway lines; rehabilitation/conversion of existing lines, station buildings and facilities, and bridges; construction of railway bridges, tunnels, and signaling and telecommunication networks; railway electrification works; wet leasing of locomotives; and setting up of production units for manufacture rolling stock, maintenance depots/workshops, concrete sleepers, and track components on turn-key basis. The company is also involved in the construction of roads and highways; bridges and flyovers; and commercial, institutional, industrial, and residential and multifunctional complexes, as well as airport hangars and runways, airport terminal buildings, station buildings and facilities, hospitals, business centers, and workshops/warehouses; and provision of HVAC, electrification, plumbing, firefighting, and hanger maintenance services. In addition, it engages in the railway, industrial, workshop, and power supply electrification works; renewable solar energy works; and distribution network works, as well as offers turnkey project management services, including design, supply, erection, testing, and commissioning services. Further, it provides turnkey solutions for signaling and communication projects. The company operates in India, Iraq, Iran, Saudi Arabia, the United Kingdom, Jordan, Turkey, Indonesia, Malaysia, Algeria, Bangladesh, Nepal, Afghanistan, Nigeria, Liberia, Syria, Tanzania, Zambia, Brazil, Mozambique, Ethiopia, Sri Lanka, South Africa, Bhutan, and Myanmar. The company was formerly known as Indian Railway Construction Company Limited. Ircon International Limited was incorporated in 1976 and is headquartered in New Delhi, India.