11 Aug 2022 | 7:46 PM
Research Report

IPO Fund Research Report: Ircon International Ltd. - IPO Product Note

Incorporated in 1976, Ircon International Limited is a government owned entity (Mini Ratna—Category I) and an integrated Indian engineering and construction company. It specializes in major infrastructure projects including railways, highways, bridges, flyovers, tunnels, aircraft maintenance hangars, runways, EHV sub-stations, electrical and mechanical works, commercial and residential properties, development of industrial areas, and other infrastructure activities. In 2016, the company was ranked number 248 in the list of the top 250 international contractors by Engineering News Record (ENR) of the United States. It is headquartered in Saket, New Delhi and has an overseas office in Malaysia. Ircon has rich experience in executing major construction and infrastructure projects, both internationally and domestically.
17 Sep 2018 | 01:36 PM

Ircon’s financial track record has been muted over FY15-18 with Sales and PAT growth of 10.6% and –9.9%. The decline in profitability was mainly on account of margin contraction of ~10.8% in FY16 due to decline in foreign projects. However, the company delivered a much improved performance in FY18 with Sales & PAT (before exceptional items) growth of 31.3% and 32.6% on the back of strong execution and improved margins. Going forward,  we expect Ircon’s  financial performance to improve further given its robust order book of ~Rs. 22,407 cr (as on FY18) which is ~5.6x FY18 revenues and strong execution track record. Further, the company has diversified across wide range of infrastructure segment and geographies with primary focus on Railways. It intends to continue the diversification in order to reduce its dependency on one segment or geography.  At upper price band of Rs. 475, Ircon trades at 10.9x FY18 EPS. Further, retail investors would get a discount of Rs. 10 per share from the offer price.