IRCON International (IRCON): Axis Securities Identifies Top Momentum Stock with Potential 17% Upside

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  <li>IRCON International has experienced a remarkable 255 percent surge in its stock price over the past year.</li>
  <li>Brokerage house Axis Securities has identified IRCON International as a top 'momentum pick' with a target price range of ₹313-325, suggesting an upside potential of up to 17 percent.</li>
  <li>"IRCON's daily chart shows a breakout above the 'Rounded Bottom' pattern at ₹282, indicating a continuation of its medium-term uptrend," noted Axis Securities.</li>
</ul>
<p><strong>IRCON International's stock has surged 255% in a year, with Axis Securities setting a target price of ₹313-325. Discover the factors driving this momentum and the stock's future outlook.</strong></p>
<h2><strong>IRCON International: A Top Momentum Pick by Axis Securities</strong></h2>
<p>IRCON International has been on a stellar run, with its stock price soaring by 255 percent over the past year. Recognizing this momentum, brokerage house Axis Securities has included IRCON International in its list of top 'momentum picks'. The brokerage has set a target price range of ₹313-325 for the stock, implying an upside potential of up to 17 percent from its current levels.</p>
<h3><strong>Technical Analysis and Market Sentiment</strong></h3>
<p>According to Axis Securities, IRCON International's daily chart has broken above the "Rounded Bottom" pattern at ₹282. This breakout is a strong technical indicator of a continuation in the medium-term uptrend. The pattern formation was accompanied by declining volumes, which surged at the breakout point, indicating increased market participation and investor interest.</p>
<h2><strong>Stock Performance and Moving Averages</strong></h2>
<p>The stock has been exhibiting a pattern of higher high-low formations on the daily chart, maintaining a position above a medium-term upward-sloping trendline. This suggests a sustained uptrend. Additionally, IRCON International's ability to stay above key short and medium-term moving averages (20, 50, 100, and 200 days) signals a positive bias in its trajectory, as noted by Axis Securities.</p>
<h3><strong>Relative Strength Index (RSI) and Future Projections</strong></h3>
<p>The daily Relative Strength Index (RSI) for IRCON International is holding above its reference line, indicating a positive bias in the stock. Following the breakout from the Rounded Bottom pattern, the stock is expected to continue its medium-term uptrend, aiming for the target price range of ₹313-325 as predicted by Axis Securities.</p>
<h2><strong>Financial Performance in Q4FY24</strong></h2>
<p>In the March quarter (Q4FY24), IRCON International reported a marginal 3.8 percent decline year-on-year (YoY) in its consolidated net profit to ₹246.8 crore, compared to ₹256.49 crore in the same period a year ago. Meanwhile, its consolidated revenue for the March quarter also saw a slight decline of 1 percent to ₹3,742.71 crore, down from ₹3,780.66 crore in the previous year.</p>
<h3><strong>EBITDA and Order Book</strong></h3>
<p>The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for Q4FY24 reached ₹424 crore, marking a 14.7 percent YoY increase from ₹370 crore in Q4FY23. This growth reflects IRCON International's improving financial health and operational efficiency. The EBITDA margin was recorded at 10.9 percent, indicating stable profitability and efficient cost management during the period. As of March 31, 2024, the total order book stands at ₹27,208 crore, with the railways sector accounting for the largest portion at ₹21,158 crore.</p>
<h2><strong>Stock Price Trend and Historical Performance</strong></h2>
<p>In 2024 year-to-date, IRCON International's stock has surged over 75 percent, delivering positive returns in three out of the five months so far. The stock jumped almost 12 percent in May, extending gains after a 14 percent rally in April. However, it experienced a 4 percent decline in March and a 3.4 percent drop in February. Notably, the stock soared 38.5 percent in January this year. The stock hit its record high of ₹301.40 on May 21, 2024, following strong March quarter results. It has advanced over 269 percent from its 52-week low of ₹78.41, recorded on May 24, 2023.</p>
<h3><strong>Conclusion</strong></h3>
<p>IRCON International's impressive stock performance and technical indicators suggest a continued uptrend, supported by strong financials and market sentiment. With Axis Securities setting a target price range of ₹313-325, investors can expect further upside potential. However, it is advisable to consult with certified financial experts before making any investment decisions.</p>