IRCON shares climb 6% today; can this multibagger rail PSU stock revisit one-year high level?

Shares of IRCON International Ltd rose 6.29 per cent in Monday's trade to hit a day high of Rs 239.95. The stock gave up some of its gains later in the day and was last seen trading 2.46 per cent higher at Rs 231.30. At this price, the multibagger stock has rallied 334.46 per cent in a year. Despite the mentioned rise, it has slipped 17.66 per cent from its one-year high value of Rs 280.90, a level touched earlier on January 23 this year.

The rail PSU's profit after tax increased by 28.8 per cent to Rs 244.7 crore in the third-quarter of the ongoing financial year 2023-24 (Q3 FY24) as against Rs 190 crore in the year-ago period.

Total income came at Rs 3,011.9 crore in Q3 FY24 compared to Rs 2,421.9 crore in the same period last fiscal, a jump of 24.4 per cent on a year-on-year (YoY) basis. Revenue from operations during the quarter increased by 22.9 per cent to Rs 2,884.2 crore from Rs 2,346.5 crore in Q3 FY23.

As of December 2023, the company's order book stood at Rs 29,436.1 crore. Out of which, railways accounted for Rs 21,282 crore, highways contributed Rs 6,102.2 crore and Rs 2,051.9 crore was with the others category.

On technical charts, support on the counter could be seen around Rs 222-220 levels. Immediate resistance will be at the Rs 245-250 zone. And, only a decisive breach above the said resistance level can trigger more upside.

"The stock after witnessing a strong bull run had make the peak at 280 levels from where it has slipped down with profit booking, and recently taking support near the 190 zone it has once again indicated a reversal to give a decent pullback. Currently, with improving bias and the RSI cooling off from the highly overheated zone, it has crossed above the resistance zone of 235 and can expect for another round of upward move in the coming days with next targets of 254 and 277 levels, expected," said Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher.

"Support will be at Rs 220 and resistance at Rs 250. A decisive close above Rs 250 level may trigger a further upside till Rs 265," said Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers.

"IRCON stock price is bullish on daily charts with strong resistance at Rs 245. A daily close above this resistance could lead to Rs 280 in the near term. Support will be at Rs 222," said AR Ramachandran from Tips2trades.

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.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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