Ircon International shares jump over 4% on bagging multiple contracts

Ircon International shares rose 4.3% to Rs 195 in Monday's trade on BSE after the company, through its joint ventures, secured contracts worth a total of Rs 755.78 crore.

Rail Vikas Nigam (RVNL) awarded a Letter of Award to the joint venture of Ircon (70%) and JPWIPL (30%) for a project. Ircon's share of the contract stands at Rs 529.04 crore.

In a separate development, the Mumbai Metropolitan Region Development Authority (MMRDA) awarded Ircon a contract for work on the Mumbai Metro Line 5 project. The scope includes construction of a 220 kV receiving substation, 25 kV overhead catenary systems, switching stations, power distribution, SCADA systems, and installation of lifts and escalators, along with five years of comprehensive maintenance after the defect liability period. The contract is valued at Rs 471.29 crore and €2.84 million.


Additionally, Ircon received another MMRDA contract worth Rs 642.44 crore and €2.79 million for the Mumbai Metro Line 6 (Swami Samarth Nagar to Vikhroli East) project.

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Q4 earnings report

Ircon reported a 3.8% year-on-year decline in net profit to Rs 246.8 crore for the quarter ended 31 March 2024, compared to Rs 256.5 crore in the same period last year. Revenue from operations slipped 1% to Rs 3,742.7 crore from Rs 3,780.7 crore.

Ebitda fell 56.3% year-on-year to Rs 286.3 crore, down from Rs 656.2 crore in Q4FY24.

IRCON International share price target

According to Trendlyne, the average target price for IRCON International is Rs 158, indicating a downside of 17% from current levels. The stock holds a ‘Sell’ rating based on recommendations from 3 analysts.
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IRCON International shares price performance

IRCON shares have risen 18% in the past three months but are down 39% over the past 12 months. The company’s market capitalisation currently stands at Rs 18,029 crore.

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