Broker’s call: Ircon Intl (Buy)

Target: ₹142

CMP: ₹100.22

In Q1FY24, the company reported a notable increase in revenue, reaching ₹2,717.20 crore, which marked a substantial 36 per cent year-on-year growth. However, there was a decline of 28 per cent in revenue compared to the previous quarter.

The EBITDA for the same period amounted to ₹208.80 crore, indicating a commendable 14 per cent quarter-on-quarter rise and an impressive 31 per cent year-on-year increase. The PAT figure stood at ₹187.40 crore, reflecting a 27 per cent decline compared to the previous quarter, yet showing a robust 30 per cent growth in comparison to the same period last year.

At the close of June 30, 2023, the company’s order book demonstrated a robust presence, commanding a total value of Rs. 32.49 billion. Impressively, this intricate compilation of orders was composed of two distinct pathways of acquisition: 45 per cent materialised through nomination, reflecting a process inherently marked by trust and preference, while the remaining 55 per cent were secured via competitive methods, higlighting the company’s prowessin prevailing against industry rivals.

Given the favourable order book and the anticipation of continued advancement, coupled with management’s margin outlook, we hold the view that the stock holds untapped potential.