Multibagger railway stock jumps 6% on Rs 1,200-crore order win

IRCON International shares gained over 6% on Monday after the railway engineering firm said it has won a Rs 1198 crore project in a joint venture. IRCON International stock rose 6.43% to Rs 266.95 against the previous close of Rs 250.80 on BSE. The multibagger stock opened higher at Rs 258 today. IRCON International shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Market cap of the firm rose to Rs 24,105 crore on BSE. The Indian Railway firm has gained 246.30 % in a year and risen 47.66% in 2023.

“Ircon International Ltd (IRCON) under its joint venture with Dineshchandra R Agrawal Infracon Pvt Ltd (DRA) i.E. Ircon-DRA JV has been awarded the LoA for the construction of Kottavalasa-Koraput Doubling Project from Shivalingapuram Station to Borraguhalu Station...," the Railway PSU said in an exchange filing.

The project will be built in engineering, procurement and construction (EPC) mode in 1,260 days, IRCON said. The cost of the project awarded by East Coast Railway is Rs 1,198.09 crore, it said. IRCON, under the Ministry of Railways, is a leading turnkey construction company.

In terms of technicals, the relative strength index (RSI) of the stock stands at 67.6, signaling it's trading in the strongly overbought zone. IRCON International shares have a beta of 1.5, indicating average volatility in a year. IRCON International shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

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