IRCON shares surge 3% on bagging Rs 254 crore contract

Shares of state-run IRCON International surged 3% to an intraday high of Rs 193.8 on the BSE on Wednesday after the company announced it has secured a Rs 253.6 crore contract from South Western Railway for the implementation of KAVACH, an indigenous train collision avoidance system. The system will be deployed across 778 route kilometers in the Bengaluru and Mysuru divisions.

The contract includes the survey, design, supply, installation, testing, and commissioning of KAVACH equipment along with associated works. The project is expected to be completed within 18 months from the date of issuance of the Letter of Acceptance (LOA).

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IRCON International reported a 3.8% year-on-year (YoY) decline in net profit to Rs 246.8 crore for the fourth quarter ended 31st March, 2024, compared to Rs 256.5 crore in the same period last year.

The company's revenue from operations fell 1% to Rs 3,742.7 crore versus Rs 3,780.7 crore in the corresponding period of the preceding fiscal. At the operating level, EBITDA dipped 56.3% to Rs 286.3 crore in the fourth quarter of this fiscal over Rs 183.2 crore in the year-ago period.

The EBITDA margin stood at 7.7% in the reporting quarter compared to 4.9% in the fourth quarter of the previous fiscal.

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IRCON International share price target


According to Trendlyne, the average target price for IRCON International is Rs 147, indicating a downside of 22% from current levels. The stock holds a ‘Sell’ rating based on recommendations from 3 analysts.

IRCON International shares price performance


IRCON shares have risen 17% in the past three months but are down 31% over the past 12 months. The company’s market capitalisation currently stands at Rs 17,709 crore.

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