IRCON International Ltd witnessed a robust 6.29% surge in its shares during Monday’s trading session, reaching a day high of Rs 239.95. While the stock retreated slightly, closing 2.46% higher at Rs 231.30, it remains a notable multibagger, boasting a staggering rally of 334.46% over the past year.
Despite this remarkable performance, the stock has experienced a 17.66% decline from its one-year high of Rs 280.90, recorded on January 23, 2024. Analysts and market experts are now scrutinizing the rail PSU’s potential to revisit and potentially surpass this peak.
In the third quarter of the ongoing fiscal year 2023-24 (Q3 FY24), IRCON reported a 28.8% increase in profit after tax, reaching Rs 244.7 crore compared to Rs 190 crore in the year-ago period. Total income for Q3 FY24 stood at Rs 3,011.9 crore, marking a significant YoY jump of 24.4%, while revenue from operations rose by 22.9% to Rs 2,884.2 crore from Rs 2,346.5 crore in Q3 FY23.
As of December 2023, IRCON’s order book stood at an impressive Rs 29,436.1 crore, with railways contributing Rs 21,282 crore, highways adding Rs 6,102.2 crore, and the others category accounting for Rs 2,051.9 crore.
Analysts provided insights into the technical charts, with support seen around Rs 222-220 levels and immediate resistance at Rs 245-250. The stock’s recent pullback from the peak at Rs 280 has prompted speculation of a reversal, with potential upward moves targeting Rs 254 and Rs 277 levels.
While Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, sees improving bias and a cooling-off RSI, Jigar S Patel from Anand Rathi Shares and Stock Brokers emphasizes a decisive close above Rs 250 triggering further upside.
AR Ramachandran from Tips2trades highlights bullishness on daily charts, citing strong resistance at Rs 245 and the potential for a move to Rs 280 with support at Rs 222.
