Shares of this midcap company jumped 3 percent in Monday’s trading session after its joint venture received an order worth Rs. 1,198.09 crores from East Coast Railway. The stock has delivered a multibagger return of 197 percent in one year to its shareholders.
With a market capitalization of Rs. 24,195 crores, the shares of Ircon International Ltd started Monday’s trading session on a higher note on a higher note at Rs. 258 compared to its previous close of Rs. 250.80. During the trading session, the shares hit a high of Rs. 266.90, gaining 3 percent and are currently trading at Rs. 256 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing announced that the Ircon-DRA JV, a Joint Venture between Ircon International Limited and Dineshchandra R Agrawal Infracon Pvt Ltd (DRA), had secured the Letter of Award (LoA) for the Kottavalasa-Koraput Doubling Project from East Coast Railway.
The project valued is at Rs. 1,198.09 crores, involves doubling the railway line from Km. 45.483 to Km. 72.550 between Shivalingapuram Station and Borraguhalu Station in connection with the Waltair Division. The contract is to be executed in 1,260 days.
Looking at the company’s financial statements, the revenue decreased by 3 percent from Rs. 2,987 crores during the September quarter to Rs. 2,884 crores in the December quarter. On the other hand, the net profits declined by 2 percent from Rs. 251 crores to Rs. 245 crores during the same period.
As of Q3FY24, Ircon International Limited possesses an extensive order book valued at Rs. 29,436 crores. This substantial portfolio comprises primarily projects related to railways, constituting 72 percent of the total. Additionally, 20.7 percent of the order book is dedicated to highway projects, while the remaining 7 percent encompasses various other sectors or projects.
The company is actively pursuing international projects in neighbouring countries and the Middle East. It is also currently awaiting orders for projects worth Rs. 5,000 crores, with bidding underway for an additional Rs. 3,000 crores worth of projects.
Moreover, the company aims to double its turnover in the next 4 to 5 years. Additionally, it has set a target for its order inflow to achieve a Compound Annual Growth Rate (CAGR) ranging between 15 percent to 20 percent over the next few years.
Headquartered in Delhi, Ircon International was established in 1976 by the Indian Railways and specializes in infrastructure construction services. Their core competencies include railways, highways, and EHT substation engineering and construction.
Written By Vaibhav Patil
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