Ircon stock extends gains, soars 7% on high volumes, strong Q4 expectations

IRCON stock is also trading higher on expectations of strong earnings in the Jan-March 2024 quarter.

Shares of Ircon International rose around seven percent, extending gains for the third straight session. The stock climbed on account of high volumes as around three crore shares changed hands on BSE and NSE combined, higher than the one-month average trading volume of one crore shares.

The stock is also trading higher on expectations of strong earnings in the Jan-March 2024 quarter.

Ircon International recently informed that a meeting of the Board of Directors is scheduled to be held on May 21, 2024 to, consider and approve the audited financial results, both standalone and consolidated, for the quarter and year ended on March 2024.

The board on May 21 will also recommend a final dividend, if any, for FY24 subject to the approval of shareholders at Annual General Meeting (AGM).

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At 2:08 pm, Ircon shares were trading 6.8 percent higher at Rs 259.40 on the National Stock Exchange (NSE). In the last six months, the stock has surged over 67 percent, massively underperforming benchmark Nifty 50 which gained 12 percent during this period.

In the last one year, Ircon's share price has skyrocketed around 230 percent, more than doubling investors' money.

According to Sanjiv Bhasin, Director at IIFL Securities, undervalued PSU stocks like Ircon, which trade at a fraction of their intrinsic value despite having a robust underlying business, are excellent picks at the moment.

"My call is that these are the blue chips. If you hold them, you are sitting on a heap of gold. If you want to get new entrants, Engineers India and Ircon are two stocks that can double and still look cheap," he said in an interaction with ET Now.

Ircon International is specialized constructions organization covering the entire spectrum of construction activities and services in the infrastructure sector. However, railway and highway construction, EHP sub-station (engineering and constructions), and MRTS are the core competence areas of the public sector undertaking (PSU).

In the recent Interim Budget, a record capital outlay of Rs 2.55 lakh crore for railways and Rs 2.78 lakh crore for roads & Highways has been allocated, marking the highest-ever investment in these sectors.

The government has also announced the implementation of three major railway corridor programs under the PM Gati Shakti initiative to enhance logistics efficiency and reduce costs.

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Additionally, initiatives such as the promotion of urban transformation through Metro rail projects and NaMo Bharat have been announced. These initiatives are providing significant support to the infrastructure sector, and Ircon International is poised to benefit from them, causing the stock to see a stellar run.

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