IRCON International shares slip after 10 sessions of gains; buy, sell or hold?

Shares of IRCON International Ltd hit a fresh all-time high today, rising for the 11th straight session. The stock jumped 3.75 per cent to Rs 89.45 over a previous close of Rs 86.21. It was among the top stocks traded in terms of turnover in early trade.

Total 30.43 lakh shares of the firm changed hands amounting to a turnover of Rs 26.38 crore on BSE. It settled 16.03 per cent higher at Rs 86.21 in the previous session.

In a year, the stock has zoomed 107.27% and risen 43% in 2023. Market cap of the firm stood at Rs 8059.28 crore. The shares of IRCON International hit a 52-week low of Rs 34.80 on June 17, 2022.

In terms of technicals, the relative strength index (RSI) of IRCON International stands at 91.3 signaling it's strongly overbought. IRCON International stock has a one-year beta of 1.1, indicating high volatility during the period.

IRCON International shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock saw some minor correction from the all-time high in late morning deals. At 11:18 am, the stock was trading at Rs 84.60, down 1.64% on BSE.

Here's a look at what analysts said on the outlook of the railway stock.

AK Prabhakar, Head of Capital, IDBI Capital said, "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."

Vaishali Parekh, Vice-President - Technical Research at Prabhudas Lilladher said, "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."

Osho Krishan, Senior Analyst - Technical & Derivative Research at Angel One said, "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."

AR Ramachandran from Tips2trades said, "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."

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

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