IRCON International shares settle 16% higher after hitting fresh all-time high; can they touch Rs 100 in near term?

Shares of IRCON International Ltd rose sharply on Tuesday, continuing their upward march for the 10th consecutive session. The stock today jumped 18.37 per cent to hit its all-time high of Rs 87.95 over a previous close of Rs 74.30. It eventually settled 16.03 per cent higher at Rs 86.21. A total of 73.26 lakh shares changed hands today on BSE, which was more than three times compared to the two-week average volume of 23.02 lakh shares. Turnover on the counter stood at Rs 60.26 crore, commanding a market capitalisation (m-cap) of Rs 8,108.19 crore.

Analysts largely suggested booking profits at current levels as the counter looked bullish but also oversold. On the upside, one of the analysts hinted that it may further move towards the Rs 100 mark.

"IRCON stock is still looking attractive with around Rs 4,000 crore of cash from a market cap size of more than Rs 7,000 crore. The stock may scale further to hit the Rs 100 mark in the near term. However, one must book profits at those levels and look for other options," said AK Prabhakar, Head of Capital, IDBI Capital.

"April has been a superb month for railway stocks, as all the counters have given a good rally towards their 52-week highs, and IRCON has also rallied nearly 60 per cent from March's close with huge volume and given a breakout above its previous high of Rs 66. After a good rally, the stock has entered the overbought zone; any consolidation or short-term correction near the Rs 66 level is a good buying opportunity. RSI in the overbought zone, one can accumulate near Rs 66–70 levels," said Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher.

"IRCON has seen a vertical rally in the past three weeks on the back of robust volumes. On the technical chart, the stock has witnessed a strong breakout around Rs 64-65 levels and soared to clock a new lifetime high. Post such a strong rally, there is some probability of profit booking in the counter. However, from a broader term perspective, the stock looks strong and has the potential to continue its uptrend. As far as levels are concerned, the support lies around the mentioned breakout zone, and till it sustains above the same, the undertone is likely to remain bullish and dips should be utilised to add long positions," said Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One.

"The stock has been very bullish but also overbought on the daily charts. Investors should be booking profits at current levels and wait for a dip near support of Rs 57-60 to buy for better returns," said AR Ramachandran from Tips2trades.

IRCON International is an engineering and construction company with specialisation in transport infrastructure. The PSU was established in 1976.

Meanwhile, Indian equity benchmarks traded higher today, extending their climb for the eighth straight session. The domestic indices traded higher led by strong buying interest in technology, metal, energy and automobile stocks.

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