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Ircon International - Strong Long Term Outlook; Revenue Growth In The Upcoming Years: HDFC Securities

On account of its healthy order book, strong execution capabilities, stable Ebitda margins, we remain positive on the stock.

<div class="paragraphs"><p>Railway overhead bridges constructed by Ircon International Ltd. (Source: Company website)</p></div>
Railway overhead bridges constructed by Ircon International Ltd. (Source: Company website)

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HDFC Securities Retail Research

Ircon International Ltd., is an integrated engineering and construction company having expertise in major infrastructure sectors including railways, highways, bridges, flyovers, tunnels, metro, railway electrification, EHV sub-stations, electrical and mechanical works, commercial and residential buildings, railway production units, amongst others.

Ircon also executes projects on build, operate and transfer mode and hybrid annuity mode by leveraging the financial strength of the company to build long term wealth.

The company is a major player of engineering, procurement and construction and project management contractor projects having executed 526 plus projects spread across railways, highways, rail electrification segment.

The order-book of Ircon is well diversified in various segments of EPC and PMC projects from the government, although the order inflow was muted in H1 FY23 but company has sufficient amount of order-book to cater as on September 2022 i.e ~5.4 times of FY22 revenue.

The order-book as at Sep-22 stood at Rs 40,020 crores. The order book comprised of 77% from railway segment, 18% from highway and 5% from other segments respectively.

Click on the attachment to read the full report:

HDFC Securities Retail Research Stock Update Ircon International.pdf

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