IRCON International stock zooms 6% on ₹862 crore order win from railways

IRCON has been awarded an EPC contract by East Central Railway. At the end of the June quarter, IRCON's order book stood at ₹23,366 crore.

IRCON International share price: Shares of Navratna public sector undertaking (PSU), IRCON International, zoomed over 6 per cent in Tuesday's intraday deals after bagging a ₹862 crore order from the East Central Railway.

 

The PSU rail stock hit the day's high of ₹111.45 on the BSE as against the last closing price of ₹104.75, rising as much as 6.4 per cent in intraday deals. As of 11 AM, IRCON International's share price was trading 1.15 per cent higher at ₹105.75 apiece as against a 0.60 per cent rise in the BSE Sensex to 72,356. 

 

The stock has been beaten down in the ongoing calendar year, losing 40 per cent year-to-date (YTD). Meanwhile, in the last year, it has declined 39 per cent.

 

 

IRCON is one of the prominent state-owned railway infrastructure companies in India.  

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IRCON order win details

According to an exchange filing dated October 12, IRCON has been awarded an EPC contract by East Central Railway. 

 

The project involves supply of ballast & P.Way materials including laying and linking of track works and other miscellaneous works for 32.5 T axle load in Gomoh-Koderma section (Rly km 300.15 to 393.68, DHN Division) and Gaya-Son Nagar section (Rly km 475.200 to 542.075, DDU Division) of East Central Railway, and supply of various P.Way materials at Gaya under Dy. CE/Con/Gaya, in connection with construction of 3rd & 4th line of Son Nagar-Andal Project, the company said in the filing. 

 

The period for the order completion is 365 days with the total consideration of ₹862.45 crore. 

 

Last week, on September 9, it bagged another order worth ₹96.25 crore from the Konkan Railway Corporation for the comprehensive annual maintenance of the integrated tunnel communication system, covering the IP-based video surveillance system, public address system, emergency communication system, and networking backbone system installed in the Katra-Banihal section (at tunnels, bridges, and stations) of Northern Railway, for a period of five years.

 

At the end of the June quarter, IRCON's order book stood at ₹23,366 crore. 

 

IRCON International: Stock outlook

Commenting on the stock, Vipin Kumar, AVP of equity research (derivatives and technical) at Globe Capital Market, said that the stock has been gradually drifting lower in a lower-highs and lower-lows formation, holding below both its long-term and short-term moving averages on charts and exhibiting a weak structure. 

 

He said that the immediate price support is placed around the 100–101 spot zone, and a decisive close below 100 could further weaken sentiment, dragging the stock toward the 93–92 levels in the near term. "We suggest traders wait for a reversal or base formation before accumulating fresh positions."

 

Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.