New Delhi: The shares of IRCON (Indian Railway Construction International Limited) are rallying on Dalal Street. The Railway PSU stock reached a high of Rs 220 on Wednesday, 4th June. The railways PSU rallied around 10-12 percent since June 3. At the time of writing this article, the shares were trading at Rs 220.45, recording a surge of 38 percent in just one month.
IRCON, a Navratna PSU under the Ministry of Railways, is in the news because it has secured an order worth Rs 1068 crore from East Central Railway for the construction of a new broad gauge rail bridge. The project involves conducting a double-line substructure and a single-line superstructure, which will connect Bikramshila and Katareah stations as part of the new railway line project. The company’s order book is quite strong, with several projects in the pipeline.
IRCON Fundamentals
The PSU firm’s revenue from operations declined around 10% on a year-on-year basis to Rs 3,412 crore in Q4 FY25 from Rs 3,787 crore in the same period last year. The stock has a price-to-earnings (P/E ) ratio of around 28 percent against a price-to-book ratio (P/B) of 3.28 percent. Heavy trading was recorded on Wednesday, with around 54 lakh Ircon shares traded in volume. The company has a market cap of Rs 20677 crore, as per BSE data.
IRCON is involved in the construction and engineering of transport infrastructure. Established in 1976, the company is providing its services in transport construction. The government is holding a 65 percent stake in the company.
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IRCON’s shares experienced a significant rally, reaching a high of Rs 220, driven by a substantial Rs 1068 crore order for a new rail bridge project from the East. Despite Q4 FY25 revenue seeing a 10% year-on-year decline, the strong order book and government backing suggest continued potential for Central Railway. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
