The shares of the public sector company gained up to 6 percent after the company received a new work order worth Rs 750 crore for the design, supply, installation, testing, and commissioning of a broad gauge ballastless track.
The shares of IRCON International Ltd were trading at Rs 289.35 crore, increasing around 3.54 percent as compared to the previous closing price of Rs 279.60 apiece. The market capitalization of the company is Rs 27,195.01 crore.
Today the shares of the company have seen significant movement after IRCON International Ltd received a new order worth Rs 750 crore from Rail Vikas Nigam Limited. The order will be executed within 42 months.
Moreover, the order is for the design, supply, installation, testing, and commissioning of a broad gauge ballastless track between chainage 6+015 (FLS) to 125+200 (FLS) in connection with the New BG line between Rishikesh and Karanprayag (125km) in the state of Uttarakhand.
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Looking forward to the company’s financial condition, revenue decreased slightly by 1 percent from Rs 3,781 crore in Q4FY23 to Rs 3,743 crore in Q4FY24, net profit decreased by 3.5 percent from Rs 256 crore to Rs 247 crore.
IRCON International Ltd has a strong order book of Rs 24,208 crore as of March 2024 in which the company received 77.8 percent (Rs 21,158 crore) of orders from railways, 21.9 percent (Rs 5,964 crore) comes from Highways and the remaining 0.3 percent order comes from others.
Over the past six months, it has returned 56.29 percent, with a multi-bagger return of 244.05 percent in a year. A shareholder’s investment of Rs. 1 lakh in the firm is worth Rs. 3.44 lakh in a Year.
The firm is actively working on international projects in neighboring countries and the Middle East. It is also expecting orders for projects worth Rs. 5,000 crores, with bidding underway for another Rs. 3,000 crores.
Furthermore, the firm plans to increase its revenue during the next four to five years. Furthermore, it has set a target for its order inflow to attain a Compound Annual Growth Rate (CAGR) of 15% to 20% over the following few years.
Ircon International Limited (IRCON) is a railway construction firm that has gradually developed since 1985 as an integrated engineering and construction PSU specializing in big and technologically demanding infrastructure projects in a variety of areas, including trains and highways.
Written by:- Abhishek Singh
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