IRCON International Ltd.
NSE: IRCONIRCON International Ltd.: A 30-second snapshot
IRCON International trades at ₹146.02, sitting 8.2% below its 200-DMA of ₹159.03 and 34.4% off its 52-week high, with a trailing PE of 22.4 — the lowest among its six Infrastructure-sector peers. The company reported a 5-year earnings CAGR of 16.3% alongside a 5-year revenue decline of 18.9%, reflecting a margin-driven rather than volume-driven earnings profile. Quality score stands at 38 out of a possible 100, ranking 4th of 6 peers.
P/E
22.4
Forward P/E
18.1
ROE
—
Debt / Equity
79.15
Profit Margin
+6.6%
Div. Yield
+1.4%
5Y ROE > 15%
1/5
5Y FCF > 0
1/5
Quality
38/100
Recent context
- ·No news articles were retrieved in this analysis cycle, leaving the recent corporate, regulatory, and project-award context unavailable for assessment.
- ·The stock has declined 3.9% over the past 3 months and 2.6% over 12 months, underperforming against a backdrop of generally active infrastructure spending in India.
- ·Analyst coverage is sparse at 4 analysts with no consensus rating available, limiting the visibility of institutional sentiment on the stock.
Strengths
- +Forward PE of 18.1 is below the trailing PE of 22.4 and is the lowest among peers (next lowest: L&T at 33.3), indicating the market is pricing in earnings improvement.
- +5-year earnings CAGR of 16.3% demonstrates that profitability has grown even as revenue contracted, pointing to meaningful cost or margin discipline over the period.
- +Dividend yield of 1.44% provides an income component against a backdrop of capital price decline, and payout has been maintained.
- +Price has recovered above the 50-DMA (₹139.80), with current price of ₹146.02 representing a 4.4% premium to that near-term moving average.
Weaknesses
- −FCF was positive in only 1 of the available measurement years, and ROE exceeded 15% in only 1 year; the consistency score of 29 reflects a pattern of weak capital returns.
- −5-year revenue declined 18.9%, suggesting IRCON has not grown its order-book revenues in aggregate; reliance on margin improvement to drive earnings is a structural vulnerability.
- −Debt-to-equity of 79.15 is elevated for a thin-margin (6.6%) non-financial infrastructure company, and the debt trend is flagged as rising — a combination that constrains financial flexibility.
- −Quality score of 38 ranks 4th of 6 in the Infrastructure peer group; with BEL at 57 and CGPOWER at 45, IRCON trails most comparable companies on composite quality metrics.
Open questions
- ?Is the 5-year revenue decline a reflection of completed project cycles and a temporarily thin order book, or does it indicate structural loss of market share to private competitors?
- ?How much of the debt-to-equity of 79.15 is project-specific (ring-fenced) versus balance-sheet leverage, and what does the maturity profile look like relative to expected project cash flows?
- ?Does the margin expansion that drove earnings growth over 5 years reflect a permanent mix-shift toward higher-margin contracts, or is it a one-time benefit from specific completed projects?
- ?Given IRCON is a PSU railway infrastructure company, to what extent does its revenue and order pipeline depend on central government capital expenditure allocations, and how has that allocation trended?
Peer comparison: Infrastructure
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| IRCON | IRCON International Ltd.You're viewing | 22.4 | — | 38 |
| Industry avg | across 5 peers | 68.8 | +17.5% | 40 |
| BEL | Bharat Electronics Ltd. | 51.8 | — | 57 |
| ABB | ABB India Ltd. | 85.0 | — | 47 |
| CGPOWER | CG Power and Industrial Solutions Ltd. | 109.2 | +19.6% | 45 |
| LT | Larsen & Toubro Ltd. | 33.3 | +15.5% | 26 |
| CUMMINSIND | Cummins India Ltd. | 64.5 | — | 24 |
Technical state
Current price
₹146.02
SMA 50
₹139.80
SMA 200
₹159.03
RSI (14)
46.7 (neutral)
From 52w high
-34.4%
1Y return
-2.6%
3M return
-3.9%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highFCF positive in only 1 of available years and ROE above 15% in only 1 year; consistency score of 29 points to structurally weak capital returns over the medium term.
- high5-year revenue CAGR of -18.9% indicates a shrinking top line; earnings growth of 16.3% over the same period is driven by margin expansion rather than volume, which may not be durable.
- mediumPrice is 8.2% below the 200-DMA (₹159.03) and has declined 2.6% over 12 months; drawdown from the 52-week high stands at 34.4%.
- mediumDebt-to-equity of 79.15 is elevated for a non-financial infrastructure company with thin 6.6% profit margins and declining revenue; debt trend is flagged as rising.
- lowQuality score of 38 ranks 4th out of 6 peers in the Infrastructure sector; lowest PE of 22.4 vs peer range of 33–109 may reflect weaker growth expectations rather than undervaluation.
- lowZero news articles retrieved; news sentiment is based on no data and cannot be relied upon for this analysis cycle.
Cross-section contradictions
- 5-year earnings grew 16.3% while revenue fell 18.9% — margin expansion has offset volume contraction; the sustainability of this divergence is unresolved.
- Stock is below the 200-DMA and 34% off its 52-week high despite earnings growth and a forward PE of 18.1 that is lower than all five sector peers.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 12 May 2026 · rotates through NIFTY 500 every ~5 days