Shares of IRCON International Ltd on Thursday shed 0.28 per cent to settle at Rs 269.50. At this price, the stock has slipped 10.58 per cent from its all-time high value of Rs 301.40, a level seen last month on May 21. Despite the mentioned drop, the multibagger rail PSU has gained 219.58 per cent in a year.
Analysts largely suggested positive views on the counter. On technical setup, support could be seen at the Rs 270-255 zone. And, a decisive close above Rs 280 is required for more upside.
"The stock is under consolidation on daily charts. On the higher side, some congestion can be seen around Rs 280 level. Only a decisive close above Rs 280 can trigger a further upside towards Rs 300 level. One can consider buying and accumulating the stock at current levels, keeping stop loss placed at Rs 266," Rajesh Palviya, Head of Technical Research at Axis Securities, told Business Today TV.
"Rs 260-255 is likely to cushion any upcoming blips, while sacrosanct support lies around Rs 245-240-odd zone. Any dip towards the mentioned support is likely to augur well for the counter and it is expected to continue its upward move from a broader term perspective," said Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One.
"The stock has potential to hit an upside target of Rs 300 in the near term. For this trade, keep stop loss at Rs 270," said Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking.
The counter traded lower than the 5-day and 10-day simple moving averages (SMAs) but higher than the 20-day, 30-, 50-, 100-, 150-day and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 52.96. A level below 30 is defined as oversold while a value above 70 is considered overbought.
The company's stock has a price-to-equity (P/E) ratio of 29.46 against a price-to-book (P/B) value of 4.40. Earnings per share (EPS) stood at 9.17 with a return on equity of 14.95.
IRCON International is an engineering and construction company with specialisation in transport infrastructure. The PSU was established in 1976. The Centre has granted 'Navratna' status to the state-owned firm. As of March 2024, the government held a 65.17 per cent stake in the company.