Overall Fundamental outlook

Business Operations:

Sector: Industrials
Industry: Engineering & Construction

Ircon International Limited, together with its subsidiaries, engages in the provision of construction services. The company undertakes construction of new railway lines; rehabilitation/conversion of existing lines, station buildings and facilities, and bridges; regirdering of railway bridges, tunnels, and signaling and telecommunication networks; railway electrification works; wet leasing of locomotives; and setting up of production units for manufacture rolling stock, maintenance depots/workshops, concrete sleepers, and track components on turn-key basis. It is also involved in the construction of roads and highways; bridges and flyovers; and commercial, institutional, industrial, and residential and multifunctional complexes, as well as airport hangars and runways, airport terminal buildings, station buildings and facilities, hospitals, business centers, workshops/warehouses; and provision of HVAC, electrification, plumbing, firefighting, and hanger maintenance services. In addition, the company provides railway, industrial, workshop, and power supply electrification works, renewable solar energy works, and distribution network works, as well as offers turnkey project management services, including design, supply, erection, testing, and commissioning services. Further, it provides turnkey solutions for signaling and communication projects; and supplies plant and machinery for workshops, high speed lightweight passenger cars, and diesel electric locomotives, as well as leases and maintains diesel locomotives. The company operates in India, Algeria, Afghanistan, Bangladesh, Bhutan, Brazil, Ethiopia, Indonesia, Iran, Iraq, Liberia, Malaysia, Mozambique, Myanmar, Nepal, Nigeria, Saudi Arabia, South Africa, Sri Lanka, Turkey, the United Kingdom, and Zambia. The company was formerly known as Indian Railway Construction Company Limited. Ircon International Limited was incorporated in 1976 and is headquartered in New Delhi, India.

Revenue projections:

Revenue projections for IRCON
Revenue projections for IRCON

IRCON's revenue is forecasted to dip below last year's figures, raising concerns for investors who are typically wary of declining financial performance. Such drops can directly affect the company's bottom line, potentially leading to a decrease in overall profitability, making investors more cautious in their decisions.

Financial Ratios:

currentRatio 1.65100
forwardPE 16.62807
debtToEquity 85.83300
earningsGrowth -0.08800
revenueGrowth -0.03500
grossMargins 0.16149
operatingMargins 0.09878
trailingEps 6.33000
forwardEps 8.43333

Ircon International Limited's current ratio, being 1.651, demonstrates that the company has the liquidity necessary to service its short-term debt. With strong cash reserves and current assets, Ircon International Limited is well-equipped to meet its immediate financial obligations without any difficulties.
Ircon International Limited's Forward PE is at a healthy level, indicating that the stock price is well-positioned relative to its earnings. With the stock not being overvalued, there remains room for future growth, suggesting a balanced opportunity for investors seeking potential upside.
Ircon International Limited's elevated debt-to-equity ratio suggests that the company is using significant debt to finance its operations. This level of leverage can amplify financial risk, particularly if profitability decreases or external conditions become unfavorable.
IRCON's low earnings and revenue growth highlight a potential decline in profitability. This suggests that the company's financial health may be weakening, and profits could shrink as a result.
IRCON's negative gross and operating margins indicate that the company is unable to generate profit from its core business activities. This suggests financial strain and could be a sign of deeper cost management issues.
IRCON's forward EPS exceeding its trailing EPS means the company is expected to be more profitable this year than last. This suggests an upward trend in earnings, with forecasts indicating that IRCON's financial performance will improve in the current financial year.

Price projections:

Price projections for IRCON
Price projections for IRCON

IRCON's price projections have gradually decreased, indicating a more conservative outlook from analysts. The repeated downward revisions suggest waning confidence in the company's ability to achieve its previous targets.

Recommendation changes over time:

Recommendations trend for IRCON
Recommendations trend for IRCON


Ircon International Limited has faced a sell bias from analysts recently, indicating that caution is advised. Investors should expand their focus to a broader set of market indicators when making decisions, ensuring a well-rounded approach rather than acting solely on one piece of analysis.