IRCON International Ltd. (IRCON) AI Stock Analysis

• Market Cap: ₹157.11B
• Dividend Yield: 1.76%
• Average Volume (3M): 258.25K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 1.93
• Revenue Growth: -13.80%
• EPS Growth: -30.89%
• Country: IN
• Employees: 867
• Sector: Industrials
• Sector Strength: 84
• Industry: Engineering & Construction
• EPS (TTM): 1.60
• Shares Outstanding: 940,515,750
• 10 Day Avg. Volume: 274,786
• 30 Day Avg. Volume: 258,249
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹201.00
• Price Target Upside: 20.32% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ₹201.00 ▲(20.32% Upside)

The most significant factor influencing the overall score is the solid financial performance of IRCON, reflecting strong revenue and profit growth. However, the negative cash flow and bearish technical indicators present risks. Valuation metrics suggest the stock is fairly priced but not particularly compelling in terms of dividend yield.

IRCON International Ltd. Business Overview & Revenue Model

Company Description

IRCON International Ltd. (IRCON) is a leading public sector enterprise under the Ministry of Railways, Government of India, primarily engaged in the engineering and construction of transport infrastructure. Established in 1976, IRCON specializes in large-scale infrastructure projects, including railways, highways, bridges, tunnels, and electrical systems, both domestically and internationally. The company is recognized for its expertise in executing complex and challenging infrastructure projects across the globe.

How the Company Makes Money

IRCON International Ltd. generates revenue primarily through its engineering, procurement, and construction (EPC) services in the infrastructure sector. The company's key revenue streams include government contracts for developing and upgrading railway infrastructure, which form a significant portion of its earnings. Additionally, IRCON undertakes various infrastructure projects in sectors like highways and bridges, both in India and abroad. The company also engages in partnerships and joint ventures to participate in large-scale international projects, further enhancing its revenue potential. Factors such as government budget allocations for infrastructure development, international collaborations, and the company's technical expertise contribute significantly to its earnings.

IRCON International Ltd. Financial Statement Overview

Summary

IRCON International Ltd. shows a strong financial foundation with steady revenue and profit growth. However, challenges exist in cash flow stability and operational efficiency, as indicated by negative free cash flow and declining EBITDA.

Income Statement

The income statement shows a strong performance with consistent revenue growth over the years. The most recent revenue figure is slightly below the previous year, but still demonstrates a healthy overall growth trajectory. Gross profit margins are solid, and the company maintains a positive net profit margin. However, a decline in EBITDA indicates potential operational challenges.

Balance Sheet

The balance sheet is robust with a solid equity base, reflected in a stable equity ratio. Debt-to-equity ratio is manageable, suggesting prudent leverage. However, the increasing total liabilities over the years could signal potential future financial constraints if not managed carefully.

Cash Flow

The cash flow statement indicates some concerns with negative free cash flow in recent periods, which could affect future investments. Operating cash flow has fluctuated significantly, raising questions about cash generation consistency. However, past positive free cash flows indicate potential for recovery.

Breakdown	Mar 2025	Mar 2023	Mar 2024	Mar 2022	Mar 2021
Income Statement
Total Revenue	107.60B	103.68B	123.31B	73.57B	53.30B
Gross Profit	11.99B	10.37B	13.53B	10.54B	9.15B
EBITDA	8.45B	10.67B	14.50B	7.80B	6.52B
Net Income	7.27B	7.65B	9.30B	5.92B	3.91B
Balance Sheet
Total Assets	195.21B	155.37B	174.45B	144.46B	112.54B
Cash, Cash Equivalents and Short-Term Investments	51.92B	71.91B	55.04B	55.22B	34.50B
Total Debt	42.99B	15.05B	25.70B	13.99B	3.31B
Total Liabilities	131.59B	103.13B	115.39B	97.80B	68.51B
Stockholders Equity	63.26B	52.11B	58.71B	46.66B	44.03B
Cash Flow
Free Cash Flow	-21.58B	-2.68B	-6.01B	13.65B	5.14B
Operating Cash Flow	-11.10B	-1.68B	2.48B	14.05B	5.18B
Investing Cash Flow	319.20M	14.68B	-11.71B	-12.27B	-7.77B
Financing Cash Flow	11.56B	-2.23B	7.79B	6.79B	1.69B

IRCON International Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 167.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:IRCON, the sentiment is Negative. The current price of 167.05 is below the 20-day moving average (MA) of 178.00, below the 50-day MA of 192.08, and below the 200-day MA of 185.97, indicating a bearish trend. The MACD of -6.77 indicates Positive momentum. The RSI at 32.47 is Neutral, neither overbought nor oversold. The STOCH value of 26.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:IRCON.

IRCON International Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RITES	67 Neutral	₹119.65B	31.01		1.98%	-7.20%	-9.50%
BEML	66 Neutral	₹163.09B	53.68		0.51%	-2.17%	6.12%
POWERMECH	65 Neutral	₹99.23B	31.12		0.03%	26.93%	21.97%
KEC	62 Neutral	₹212.03B	34.72		0.69%	10.78%	50.46%
Sector *	62 Neutral	C$7.21B	-5.53	-4.20%	2.31%	13.66%	-29.71%
IRCON	60 Neutral	₹157.11B	23.53		1.76%	-13.80%	-30.89%

IRCON International Ltd. Corporate Events

Government of India Maintains Stable Stake in IRCON International

The Government of India, through the Ministry of Railways, holds a significant stake in IRCON International Ltd., with 61,29,28,392 equity shares as of March 31, 2025. It has been disclosed that there has been no encumbrance on these shares during the financial year ending on that date, indicating stability in the government’s investment in the company.