Ircon International Ltd (IRCON) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Cemindia Project

IndiGrid Trust

Engineers India

Techno Elec.Engg

Vertis Infra.

Rites

Ircon Intl.

NCC

KEC Internationa

Afcons Infrastr.

Central Mine Pla

Why is Ircon International Ltd ?

Flat results in Mar 26

INTEREST(9M) At Rs 274.90 cr has Grown at 42.08%
ROCE(HY) Lowest at 9.03%
DEBT-EQUITY RATIO(HY) Highest at 0.86 times

Despite the size of the company, domestic mutual funds hold only 0.83% of the company

Domestic mutual funds have capability to do in-depth on-the-ground research on companies- their small stake may signify either they are not comfortable at the price or the business

Underperformed the market in the last 1 year

Even though the market (BSE500) has generated returns of 0.01% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -22.35% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Ircon Intl. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ircon Intl.

-22.24%

-0.55

40.80%

Sensex

-6.68%

-0.51

12.94%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

14.15%

EBIT Growth (5y)

11.36%

EBIT to Interest (avg)

5.35

Debt to EBITDA (avg)

2.87

Net Debt to Equity (avg)

-0.06

Sales to Capital Employed (avg)

1.26

Tax Ratio

21.68%

Dividend Payout Ratio

34.26%

Pledged Shares

Institutional Holding

6.85%

ROCE (avg)

42.86%

ROE (avg)

12.99%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.05

EV to EBIT

21.15

EV to EBITDA

16.95

EV to Capital Employed

2.11

EV to Sales

1.39

PEG Ratio

Dividend Yield

1.56%

ROCE (Latest)

9.76%

ROE (Latest)

9.30%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

PBT LESS OI(Q)

At Rs 145.62 cr has Grown at 66.5% (vs previous 4Q average

NET SALES(Q)

At Rs 3,188.98 cr has Grown at 37.2% (vs previous 4Q average

PBDIT(Q)

Highest at Rs 266.89 cr.

PAT(Q)

At Rs 191.60 cr has Grown at 24.7% (vs previous 4Q average

-9What is not working for the Company

INTEREST(9M)

At Rs 274.90 cr has Grown at 42.08%

ROCE(HY)

Lowest at 9.03%

DEBT-EQUITY RATIO(HY)

Highest at 0.86 times

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.49 times

NON-OPERATING INCOME(Q)

is 41.24 % of Profit Before Tax (PBT

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Here's what is working for Ircon Intl.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 145.62 cr has Grown at 66.5% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 87.46 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Net Sales - Quarterly

At Rs 3,188.98 cr has Grown at 37.2% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 2,323.54 Cr

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Operating Profit (PBDIT) - Quarterly

Highest at Rs 266.89 cr.

in the last five quarters

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 191.60 cr has Grown at 24.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 153.68 Cr

MOJO Watch

Near term PAT trend is positive

PAT (Rs Cr)

Here's what is not working for Ircon Intl.

Interest - Nine Monthly

At Rs 274.90 cr has Grown at 42.08%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Debt-Equity Ratio - Half Yearly

Highest at 0.86 times and Grown

each half year in the last five half yearly periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income - Quarterly

is 41.24 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Debtors Turnover Ratio- Half Yearly

Lowest at 6.49 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio