IRCON, a leader in the engineering and construction space, saw a sudden spike in its stock price on March 18, 2025, after getting a huge EPC contract. The IRCON share price today, as of 11.31 am, is ₹146.0, a 5.72% surge from the last close of ₹138.17. The stock rose after a five-day losing spree. The losses were mainly due to general market trends and weaker-than-expected financial performance during the last quarter.
Let’s explore the IRCON stock surge today to understand the current performance and key financial metrics before making any investment decisions.
Market Performance and Volatility
As of 11.32 am on March 18, 2025, the IRCON share price stands at Rs. 146.15 with a 5.78% rise:
IRCON shares opened at ₹143.60 and touched an intraday high of ₹150.40 with a near 7% gain. Thus showing the renewed investors' confidence. The market capitalization of the company is now ₹13,723 crore. The trading volume is 26,726,243 shares, showing the massive buying interest.
The recent rise is due to IRCON's joint venture(JV) with Badri Rai and Company, which won an EPC contract of ₹1,096 crore from the Government of Meghalaya. The JV is for the construction of a new secretariat complex in New Shillong City.
Despite the recent rally, IRCON stock has been troubled by financial issues. The company's net profit went down 65% compared to the previous year and was at ₹86 crore compared to ₹244.70 crore during the same period last year.
Revenue also went down by 10%, from ₹2,929.54 crore to ₹2,612.86 crore. The company is fundamentally very strong, with a price-to-earnings (P/E) ratio of 18.06. It is significantly lower than the sector average of 42.78, which could mean undervaluation.
The book value per share is ₹64.09, while the dividend yield is 2.12%, so it is a good choice for income-oriented investors. IRCON’s trailing twelve months (TTM) earnings per share (EPS) is ₹8.08, with a year-on-year decline of 19.09%. Its stock is still volatile, as seen with a beta of 1.71, which means increased price volatility relative to the market.
The newly bagged ₹1,096 crore EPC order is a big plus for IRCON. The work, which will be done over 36 months, is constructing a new secretariat complex in Shillong. IRCON has a 26% holding in the joint venture, worth ₹285 crore. This will help improve the revenue visibility of the company, build its order book, and yield a constant inflow of revenue in the next couple of years.
Market experts feel that the contract win may assist IRCON shares in regaining investor confidence despite facing financial problems. The firm's success in obtaining large-scale government deals shows its credibility and operational efficiency in the infrastructure sector.
Investors are optimistic about the growth prospects of IRCON shares after this order win. The stock's performance in the next quarters will be driven by its efficiency in execution and capacity to keep itself profitable amid rising operational expenses. General market conditions and government investment in infrastructure will also impact the stock.
For the time being, IRCON shares have ended a five-day losing streak and are set for possible growth, supported by this strategic contract win. Analysts show mixed sentiments, with the majority suggesting a ‘SELL’ while a few recommend a ‘HOLD’ rating. However, investors should keep a close eye on future financial performance and project developments.