Miniratna PSU below Rs 100 hits fresh 52-week high and offers attractive dividend yield in infra space

resr 5paisa Research Team

Last Updated: 24th April 2023 - 11:51 am

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 The Indian stock market has been witnessing a mixed trend, but amidst all the chaos, there is one particular stock that has caught the attention of investors.

IRCON International Limited, a Miniratna (Category - I) Schedule A, Public Sector Enterprise, surged nearly 10% on Monday and is attracting a lot of market participants.

Company profile 

IRCON is a leading turnkey construction company in the public sector known for its quality, commitment, and consistency in terms of performance. The company's core competence lies in Railways, Highways and Extra High-Tension substation engineering.

The company has a massive total order book of Rs 38,023 crore as on December 31, 2022, with 50-50% between nomination and competitive bidding orders. Interestingly, 76% of the order book is concentrated in the Railways segment, while 19% comes from highways and 5% from other segments. The company is not bidding for low-ticket projects and will focus on niche projects from the next financial year onwards. 

Technical perspective 

IRCON has logged a fresh 52-week high on Monday, and as the stock is trading at its 52-week high, it is above all the short and long-term moving averages, and all of them are trending up. The stock also meets the Guppy Multiple Moving Average (GMMA) set up by Daryl Guppy, which indicates that the stock is in a clear uptrend supported by fundamentals. The stock has an EPS Rank of 89, which is a good score indicating consistency in earnings.

What's more intriguing is that the stock ticks the majority of the boxes of CASLIM characteristics. The relative price strength is at 85, and EPS strength has improved to 89, both of which are good scores. The buyer demand stands at A+, and a group rank of 20 indicates that it belongs to a strong industry group.

At present, the stock trades at a PE multiple of 8.6x and offers an attractive dividend yield, making it a better option in the infra space.

Conclusion 

IRCON International Limited's impressive performance and positive outlook, it is no surprise that investors are flocking to this stock. Its consistency in earnings, technical strength, and strong fundamentals make it a promising option for long-term investment. 

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