NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
IDBI Capital Report
Ircon International Ltd.'s Q2 FY25 PAT came below with our estimates. Operating performance was weak as Q2 FY25 Revenue declined by 20% YoY and and adjusted Ebitda margin at 4.5% was down 140 bps YoY.
Ircon guides revenue growth to be flat on YoY basis in FY25 and Ebitda margin to be maintained at the same level. Ircon's order win has been lukewarm and order book has seen weakness at Rs 242 billion in Q2 FY25 versus Rs 321 billion YoY. This we understand could impact revenue of FY25E/26E, which could partially be seen in H2 FY25. Opportunity remains huge for Ircon and thus awaits order win.
We value the company on SOTP with target price of Rs 202. Target price implies valuation of ~18.5 times FY26E EPS. Retain Hold rating on the company, stock catalysts are execution uptick and order win.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
