IRCON jumps 25% in four days

IRCON International gained 3.43% to Rs 106.95, extending its winning run to fourth consecutive session.

Shares of IRCON International zoomed nearly 25% in four trading sessions from its previous closing low of Rs 85.7 on 5 February 2021. The stock has recovered 83.7% from its 52-week low of Rs 58.2 recorded on 24 March 2020. The stock is now 12% below its 52-week high of Rs 119.76 hit on 19 February 2021.

The counter was in demand after the company said that its board will consider bonus issue of shares on Monday, 15 February 2021. In the same meeting, the company's board will also consider Q3 earnings and interim dividend.

On the technical front, the stock's RSI (relative strength index) stood at 81.554. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock is trading above its 50 and 100 days simple moving average placed at 89.06 and 84.24 respectively. These levels will act as crucial support zones in near term.

IRCON International is an engineering and construction, specialized in transport infrastructure and is wholly owned by the Ministry of Railways. As on 31 December 2020, the Government of India held 89.18% stake in IRCON International.

On a consolidated basis, IRCON's net profit rose 1.5% to Rs 84.07 crore on a 15.9% fall in net sales to Rs 1040.41 crore in Q2 FY21 over Q2 FY20.

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