IRCON shares slip 9% from record high; should you invest in stock post Q4 results?

Shares of IRCON International Ltd fell 5.44 per cent in Wednesday's trade to hit a low of Rs 273.95. At this price, the stock has declined 9.11 per cent from its all-time high of Rs 301.40, a level seen in yesterday's session.

On the earnings front, the rail PSU has reported a 15.1 per cent growth in its net profit for the March 2024 quarter. Profit after tax (PAT) came at Rs 285.68 crore in Q4 FY24 against Rs 248.18 crore in the year-ago period. In FY24, PAT jumped 21.5 per cent to Rs 930 crore compared to Rs 765 crore in FY23.

Revenue climbed 0.6 per cent to Rs 3,796.59 crore in Q4 FY24 from Rs 3,773.97 crore in the corresponding period last year. Total order book stood at Rs 27,208 crore. The company's board has also recommended a final dividend of Rs 1.30 per equity share on a face value of Rs 2 per share for FY24.

Technical analysts largely remained positive on the counter. Support could be seen at the Rs 260-280 zone. And, a decisive close above Rs 298 is required for further upside. That said, one of the analysts suggested booking profits at current levels.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "IRCON has seen a strong breakout above the Rs 260-270 zone and is witnessing a follow up buying interest. The counter has entered the overbought terrain, but the biases remain bullish. Any dip towards the mentioned support is likely to augur well for the counter and it is expected to continue its cycle of higher highs - higher lows from a broader term perspective."

Shiju Koothupalakkal - Technical Research Analyst at Prabhudas Lilladher, said, "The stock has indicated a decent pullback from the bottom made near Rs 220 level. It has given a breakout above its previous peak level of Rs 280 to further strengthen the trend. Next expected targets are Rs 336 and Rs 357 in the coming days. Support now would be shifted to Rs 280 and one can maintain their position in the stock expecting for further gains."

AR Ramachandran from Tips2trades said, "IRCON is bullish but also overbought on daily charts with next resistance at Rs 298. Investors should keep booking profits as a daily close below support of Rs 268 could lead the stock to a lower level of Rs 219 in the near term."

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.