Multibagger Ircon International At One-Month High After JV Wins Rs 751-Crore Order
The order will be executed through a joint venture between Ircon, Paras Railtech and PCM Strescon Overseas Ventures.
Ircon International Ltd. shares rose to a one-month high on Friday after it won an order worth Rs 750.83 crore from Rail Vikas Nigam Ltd. related to a new 125 kilometre broad gauge line between Rishikesh and Karanprayag in Uttarakhand.
The order will be executed through a joint venture between Ircon, Paras Railtech Pvt. Ltd. and PCM Strescon Overseas Ventures Ltd. in the ratio of 60:25:15, an exchange filing by the company said.
The order, which includes design, supply, installation, testing, and commissioning of broad gauge ballastless track, supply of ballast, and installation of track between chainage 6+015 final location survey to 125+200 FLS, has to be completed within 42 months.
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Shares of the company rose as much as 5.45% to Rs 295 apiece, the highest level since June 3. It pared gains to trade 3.38% higher at Rs 289.20 apiece as of 10:54 a.m. This compares to a 0.22% decline in the NSE Nifty 50 Index.
The stock has risen 68.7% on a year-to-date basis and 197.07% in the last 12 months. Total traded volume so far in the day stood at 2.31 times its 30-day average. The relative strength index was at 65.22.
Out of four analysts tracking the company, two maintain a 'buy' rating, one recommends a 'hold,' and one suggests a 'sell,' according to Bloomberg data. The average 12-month consensus price target implies a downside of 20.7%.
