IRCON shares surge 12% today; can the stock revisit one-year high level?

Shares of IRCON International Ltd rose sharply in Tuesday's trade, in line with the positive trend in domestic benchmarks. The stock jumped 11.68 per cent to hit a day high of Rs 163.95 over its previous close of Rs 146.80. The multibagger stock has gained more than 180 per cent in the last six months.

The government has recently granted 'Navratna' status to the state-owned firm. IRCON said it is the 15th Navratna amongst the CPSEs (Central Public Sector Enterprises) with an annual turnover of Rs 10,750 crore and net profit of Rs 765 crore, on a consolidated basis, for the financial year 2022-23 (FY23).

On technical setup, support on the counter could be seen between Rs 134-140 levels. And, near-term target would be Rs 170, an analyst said.

AR Ramachandran from Tips2trades said, "IRCON looks bullish on daily charts with strong support at Rs 134." It may hit Rs 170 level in the near term, he added.

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "The counter has made a nice base near the 21-day exponential moving average (EMA), which comes around Rs 135-140."

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150- and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 68.11. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 16.93 against a price-to-book (P/B) value of 2.83.

The scrip has an analyst target price of Rs 145, Trendlyne data showed, suggesting a potential downside of 10 per cent in a year. It has a one-year beta of 2.01, indicating high volatility on the counter.

On BSE, around 23.81 lakh shares changed hands today at the time of writing this story. The figure was way more than the two-week average volume of 9.89 lakh shares. Turnover on the counter came at Rs 37.62 crore, commanding a market capitalisation (m-cap) of Rs 15,250.46 crore.

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

Meanwhile, Indian equity benchmarks were trading higher, led by gains in banks, financials, metals and automobile stocks.

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

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