The shares of this construction company gained up to 1.7 percent after the company received an order worth Rs 2,920 crores from the Ministry of MSME of India.
With a market capitalization of Rs 14,540 Cr, Ircon International Ltd. shares were trading at Rs 259 a share, an increase of 1.7 percent.
According to the exchange filing, Ircon International Ltd received an order for the engagement of the Nodal Agency for the establishment of technology centres and extension centers from the development commissioner, Ministry of MSME.
In addition to the above-mentioned order, the construction cost of this order is worth Rs 2,920 crore, and the nodal agency charges 84.68 crore plus 2.90 percent GST. The period to complete this order is 36 months from the date of entering into the contract.
Examining the business’s financials, the company’s revenue increased 35.7 percent from Rs. 2,001.91 crores in Q1FY23 to Rs 2,717.15 crores in Q1FY24. Further, During the same period, Net Profit increased by 45 percent from Rs 131.92 crores to Rs 191.7 crores.
Ircon International Ltd. reported excellent return ratios from the previous financial year. Return on equity (ROE) increased from 13.06 percent in FY 2022-23 to 15.5 percent in FY2023-24, and in the same time frame, the return on capital employed (ROCE) increased from 17.37 percent to 18.77.
Ircon International Ltd.’s recent shareholding pattern, the company’s promoters own 73.08 percent, retail shareholders own a 22.19 percent stake and foreign institutional investors own a 4.01 percent stake in the company.
Ircon International Ltd stock gave a multi-bagger return of 218.76 percent a year. A shareholder investment of Rs 1 lakh in the company would be worth Rs 3.18 Lakhs in a year.
Ircon International Ltd. is a public sector undertaking (PSU) that specializes in transportation infrastructure engineering and construction.
Written by:- Abhishek Singh
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