Railway PSU Stock: The stock market is under a lot of pressure at the moment and many multibaggers have corrected significantly from their highs. Diwali time is standing on the threshold and it is considered very auspicious in terms of investment.
A market expert has selected a railway stock for your portfolio as a Diwali investment idea. This stock has corrected about 55% from its high and is trading at a 7-month low after March.
Ircon Fell 45% From Its High
Ircon International Ltd (NSE: IRCON) stock is trading in the range of Rs 201.80 with a big fall of 5.65% on October 22. This stock is at its lowest level after March 2024.
On July 15, this Railway PSU Stock had made a life high of Rs 351.60. From there, the correction started, in which it has fallen by about 45%. In such a situation, the valuation looks quite attractive.
Ircon Share Price Target
The market expert has advised to buy it under DII PICK i.e. Diwali Investment Idea. Experts said that Ircon International Ltd works for railway infrastructure.
The growth outlook is strong. Revenue growth is expected to grow at the rate of 20-25% for the next 1-2 years.
There is good support in the range of Rs 200-220 and the stock is in this range. A target of Rs 260/270 can be seen by next Diwali.
Ircon International’s Outlook Is Strong
Ircon International Ltd has got Navratna status. This company mainly does infra projects for railways and highways.
Apart from India, its business is spread across more than 25 countries including Malaysia, Nepal, Bangladesh, and South Africa. Its order book as of June 30, 2024, is more than 26,000 crore rupees.
Quick Fact
| Company name | Ircon International |
|---|---|
| Business Type | Railway infra projects |
| Other services | Highways projects |
| Navratna status | Yes |
| Countries | India, Malaysia, Nepal, Bangladesh, South Africa |
| Order book (June 30, 2024) | ₹26,000 crore+ |
| Revenue growth | 20-25% expected for the next 1-2 years |
| Recent share price (Oct 22) | ₹201.80 (5.65%) |
| Life High (July 15, 2024) | ₹351.60 |
| Fall from life high | 45% |
| Current trading range | ₹200-₹220 |
| Possible target price by next Diwali | ₹260/₹270 |
| Time for target | 1 year |
| Correction from high | 55% |
| Market sentiment | Low, attractive valuation |
Disclaimer: The website and its content are for informational purposes only and should not be considered investment advice.
