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

Engineers India

IndiGrid Trust

SG Mart

Welspun Enterp

Rites

Powergrid Infra

Techno Elec.Engg

Central Mine Pla

Ircon Intl.

KEC Internationa

Afcons Infrastr.

Why is Ircon International Ltd ?

Poor long term growth as Net Sales has grown by an annual rate of 9.17% and Operating profit at 5.67% over the last 5 years

Negative results in Jun 26

PBT LESS OI(Q) At Rs 39.91 cr has Fallen at -52.4% (vs previous 4Q average)
PAT(Q) At Rs 92.74 cr has Fallen at -37.7% (vs previous 4Q average)
INTEREST(9M) At Rs 297.34 cr has Grown at 33.91%

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

Below par performance in long term as well as near term

Along with generating -33.38% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

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.

-33.38%

-0.90

36.97%

Sensex

-8.85%

-0.66

13.46%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

9.17%

EBIT Growth (5y)

5.67%

EBIT to Interest (avg)

4.37

Debt to EBITDA (avg)

3.55

Net Debt to Equity (avg)

0.08

Sales to Capital Employed (avg)

1.22

Tax Ratio

23.75%

Dividend Payout Ratio

34.26%

Pledged Shares

Institutional Holding

6.67%

ROCE (avg)

40.55%

ROE (avg)

12.76%

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

1.63

EV to EBIT

18.97

EV to EBITDA

14.78

EV to Capital Employed

1.59

EV to Sales

1.23

PEG Ratio

Dividend Yield

1.91%

ROCE (Latest)

8.39%

ROE (Latest)

8.97%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

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

1What is working for the Company

NO KEY POSITIVE TRIGGERS

-19What is not working for the Company

PBT LESS OI(Q)

At Rs 39.91 cr has Fallen at -52.4% (vs previous 4Q average

PAT(Q)

At Rs 92.74 cr has Fallen at -37.7% (vs previous 4Q average

INTEREST(9M)

At Rs 297.34 cr has Grown at 33.91%

ROCE(HY)

Lowest at 9.03%

DEBT-EQUITY RATIO(HY)

Highest at 0.86 times

NET SALES(Q)

At Rs 1,955.83 cr has Fallen at -13.8% (vs previous 4Q average

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.49 times

NON-OPERATING INCOME(Q)

is 68.53 % of Profit Before Tax (PBT

EPS(Q)

Lowest at Rs 0.99

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Here's what is not working for Ircon Intl.

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 39.91 cr has Fallen at -52.4% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 83.90 Cr

MOJO Watch

Near term PBT trend is very negative

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 92.74 cr has Fallen at -37.7% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 148.87 Cr

MOJO Watch

Near term PAT trend is very negative

PAT (Rs Cr)

Net Sales - Quarterly

At Rs 1,955.83 cr has Fallen at -13.8% (vs previous 4Q average)

over average Net Sales of the previous four quarters of Rs 2,267.76 Cr

MOJO Watch

Near term sales trend is very negative

Net Sales (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

Interest - Nine Monthly

At Rs 297.34 cr has Grown at 33.91%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 68.53 % 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

Earnings per Share (EPS) - Quarterly

Lowest at Rs 0.99

in the last five quarters

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (Rs)

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