Multibagger Stock: IRCON International
IRCON International
IRCON International (IRCON) is a railway and highway construction company that has experienced notable fluctuations in its share price over the past year.
On June 30, 2022, the stock reached a one-year low of Rs 35.75. However, subsequent buying pressure drove the share price up by over 156% within a year, reaching a record high of Rs 91.70 on June 21, 2023.
Despite a slight decline on Wednesday, IRCON shares have witnessed significant gains in the past year. Investors have seen their investments grow by more than two and a half times during this period.
Additionally, IRCON is expected to distribute dividends, which further enhances the potential returns for shareholders.
As of June 28, 2023, IRCON’s shares closed at Rs 83.66, representing a 0.79% decrease. The company’s total market capitalization stands at Rs 7,868.35 crore.
What is the Record Date for Dividend
According to the exchange filing made by IRCON on July 24, the company has provided information regarding the dividend and its record date. IRCON has announced its intention to distribute a dividend of Rs 1.20 per share with a face value of Rs 2 for the financial year 2022-23.
However, it is important to note that this distribution is subject to the approval of the shareholders during the annual general meeting (AGM) of the company.
Once the necessary approval is obtained from the shareholders, IRCON will proceed with the distribution of dividends. As per the filing, the company aims to complete the dividend distribution within 30 days of receiving the shareholder approval.
IRCON Has Given Good Returns
Over the past year, the shares of IRCON have delivered impressive returns for investors. On June 30, 2022, the stock reached its one-year low at Rs 35.75.
However, subsequent buying pressure drove the share price up significantly, resulting in a surge of over 156% within a year. On June 21, 2023, the shares reached a record high level of Rs 91.70.
Following the record high, some investors engaged in profit-booking, causing the share price to slow down.
Currently, the stock is trading at approximately a 9% discount from its record high level. It’s important to note that fluctuations in share prices are common, and profit-booking is a natural phenomenon as investors secure their gains.
Despite the slight decline, IRCON’s shares have shown resilience, strengthening by more than 1% over the course of the week. This indicates ongoing interest and support from investors in the company.
What is the Status of the Shares
The status of IRCON’s shares can be assessed based on various technical indicators and analysis. One such indicator is the Relative Strength Index (RSI), which currently stands at 56.4.
An RSI reading of 50 is considered neutral, suggesting that IRCON’s shares are neither in the overbought zone nor in the oversold zone. This indicates a balanced sentiment in the market for the stock.
According to ICICI Direct, a domestic brokerage firm, the shares of IRCON face resistance at multiple levels. The first resistance level is at 84.7, followed by 85.8 and then 86.6.
These levels may act as barriers for further upward movement in the share price. On the other hand, if the price experiences a decline, it is expected to find support at 82.9, 82.1, and 81.0 levels. These support levels can potentially limit the downside movement of the stock.
From an exponential moving averages (EMA) perspective, IRCON’s shares are displaying a positive signal. The stock is currently trading above the 20-day, 50-day, 100-day, and 200-day EMAs. This suggests a favorable trend and indicates the potential for further upside momentum.
It’s important to note that technical analysis provides insights based on historical price patterns and indicators.
However, market conditions can change, and it is recommended to consider other fundamental factors, conduct comprehensive research, and consult with a financial advisor to make well-informed investment decisions.
How is the Financial Health of the Company
When analyzing the financial health of IRCON, a PSU (Public Sector Undertaking) company, key financial indicators provide valuable insights into its performance.
Starting with the standalone net profit, IRCON experienced a significant year-on-year increase of 25% to reach Rs 248.18 crore.
This positive growth demonstrates an improvement from the net profit of Rs 227.42 crore recorded in the December 2022 quarter and Rs 197.09 crore in the March 2022 quarter.
The upward trend in net profit indicates the company’s ability to generate higher earnings and suggests positive financial performance.
In terms of revenue, IRCON witnessed a notable year-on-year increase of 31.72% to reach Rs 3,773.97 crore.
Comparing this figure with the revenue of Rs 2,865.12 crore generated in the March quarter, the growth is substantial. The significant revenue jump reflects increased business activity and highlights the company’s ability to generate higher sales.
These positive financial indicators, including the rise in net profit and revenue, suggest that IRCON’s financial health is improving.
However, it is important to conduct a comprehensive analysis of other financial metrics, such as debt levels, cash flow, and profitability ratios, to obtain a more comprehensive understanding of the company’s overall financial health.
