Our 9th company in the Series of Best Stocks Below Rs. 50 is Ircon International Ltd.
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
IRCON International Ltd is a civil engineering construction Company.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹4,492cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 11.49
Sector PE Ratio: 64.18
PE Ratio of this company is low but better than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 1.02
Sector PB Ratio : 4.69
PB Ratio of this company is low than Sector’s PB ratio. So it’s Good PB than the peers of this company.
Dividend Yield : 7.83%
Sector Dividend Yield : 1.51%
Dividend Yield of this company is high than Sector. Dividend of this company is Good than the peers of this company.
ROE: 8.88%
ROCE: 10.71%
ROE (Return on equity) and ROCE (Return on capital equity) is Below Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
Year | Revenue(cr.) | Profit(cr.) |
2021 | 5,538.31 | 391.06 |
2020 | 5,570.08 | 485.27 |
2019 | 5,011.15 | 450.07 |
2018 | 4,213.23 | 408.66 |
2017 | 3,380.65 | 383.98 |
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
2021 | 2020 | 2019 | 2018 |
6,850.85 | 6,009.40 | 9,354.24 | 9,009.64 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021, Company have 6,850.85 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
2021 | 2020 | 2019 | 2018 |
513.56 | -229.31 | -2,352.01 | -3,290.19 |
Debt Level: IRCON’s debt to equity ratio (7.1%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if IRCON’s debt to equity ratio has reduced over the past 5 years.
Debt Coverage: IRCON’s debt is well covered by operating cash flow (166%).
Interest Coverage: IRCON’s interest payments on its debt are well covered by EBIT (15.3x coverage).
Share Holding Pattern
Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
Jun 2021 | 73.18% | 2.30% | 0.02% | 0.78% | 23.71% |
Mar 2021 | 73.18% | 2.24% | 0.02% | 0.93% | 23.64% |
Dec 2020 | 73.18% | 1.87% | 0.15% | 0.76% | 24.03% |
Sep 2020 | 73.18% | 1.59% | 0.15% | 0.19% | 24.89% |
Above table showing there is no big change in Promotors holding which is 73.18% in June 2021. FIIs invested in June 2021 with 2.30% and retail investor is 23.71%.
Now We’ll check the return of the company, This company started from Rs. 42.15 at 3 Oct 2018. This company given 23.58% returns in last 1 year from 2020 to 4 Nov 2021.
Investment Checklist for Ircon International Ltd.
- The company is currently profitable
- Earnings have declined by 2.2% per year over past 5 years
- Unstable dividend track record
- Debt level is low and not considered a risk
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- Profit margins decreased but not substantially
- At least 3 years of financial data is available
- No concerning events detected
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹60B)
- Market cap is meaningful (₹45B)
- IRCON does not have negative shareholders equity.
According to its historical performance we can predict stock target.
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Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
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Entry Buying Zone : 40 to 45
Target: 60 ( 40% Upside)
Time Horizon: 1 Year
Risk Profile: High Risk (Stock is 3.71x as volatile as Nifty)
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Hope you liked Our 9th company in the Series of Best Stocks Below Rs. 50. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss