NSEI:IRCON

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Executive Summary

Ircon International Limited, together with its subsidiaries, provides construction services in India and internationally.


Snowflake Analysis

Mediocre balance sheet second-rate dividend payer.


Similar Companies

Share Price & News

How has Ircon International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IRCON has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.2%

IRCON

-0.5%

IN Construction

1.2%

IN Market


1 Year Return

12.3%

IRCON

-37.6%

IN Construction

-9.0%

IN Market

Return vs Industry: IRCON exceeded the Indian Construction industry which returned -37.6% over the past year.

Return vs Market: IRCON exceeded the Indian Market which returned -9% over the past year.


Shareholder returns

IRCONIndustryMarket
7 Day1.2%-0.5%1.2%
30 Day-3.1%3.3%6.8%
90 Day0.8%26.6%30.1%
1 Year18.7%12.3%-36.2%-37.6%-7.2%-9.0%
3 Yearn/a-28.0%-31.1%1.3%-3.4%
5 Yearn/a-22.8%-27.7%27.3%17.6%

Price Volatility Vs. Market

How volatile is Ircon International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Ircon International undervalued compared to its fair value and its price relative to the market?

9.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IRCON (₹91.6) is trading above our estimate of fair value (₹40.76)

Significantly Below Fair Value: IRCON is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IRCON is good value based on its PE Ratio (9.2x) compared to the Construction industry average (9.2x).

PE vs Market: IRCON is good value based on its PE Ratio (9.2x) compared to the Indian market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IRCON's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IRCON is overvalued based on its PB Ratio (1.1x) compared to the IN Construction industry average (0.5x).


Next Steps

Future Growth

How is Ircon International forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.6%

Forecasted Capital Goods industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Ircon International has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Ircon International performed over the past 5 years?

-1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IRCON has high quality earnings.

Growing Profit Margin: IRCON's current net profit margins (8.8%) are lower than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: IRCON's earnings have declined by -1.1% per year over the past 5 years.

Accelerating Growth: IRCON's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IRCON had negative earnings growth (-17.8%) over the past year, making it difficult to compare to the Construction industry average (-2.2%).


Return on Equity

High ROE: IRCON's Return on Equity (11.5%) is considered low.


Next Steps

Financial Health

How is Ircon International's financial position?


Financial Position Analysis

Short Term Liabilities: IRCON's short term assets (₹68.4B) exceed its short term liabilities (₹52.6B).

Long Term Liabilities: IRCON's short term assets (₹68.4B) exceed its long term liabilities (₹30.5B).


Debt to Equity History and Analysis

Debt Level: IRCON's debt to equity ratio (50.2%) is considered high.

Reducing Debt: IRCON's debt to equity ratio has increased from 6.9% to 50.2% over the past 5 years.

Debt Coverage: IRCON's debt is not well covered by operating cash flow (19.7%).

Interest Coverage: IRCON earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Ircon International current dividend yield, its reliability and sustainability?

5.87%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IRCON's dividend (5.87%) is higher than the bottom 25% of dividend payers in the Indian market (0.69%).

High Dividend: IRCON's dividend (5.87%) is in the top 25% of dividend payers in the Indian market (2.86%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether IRCON's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if IRCON's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (43.1%), IRCON's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Sunil Chaudhary (59yo)

3.75yrs

Tenure

₹5,672,200

Compensation

Mr. Sunil Kumar Chaudhary has been Chairman and Managing Director at Ircon International Limited since October 31, 2016. Mr. Chaudhary served as a Director of Projects at NBCC (India) Limited (formerly Nat ...


CEO Compensation Analysis

Compensation vs Market: Sunil's total compensation ($USD76.00K) is below average for companies of similar size in the Indian market ($USD355.46K).

Compensation vs Earnings: Insufficient data to compare Sunil's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Sunil Chaudhary
Chairman & MD3.75yrs₹5.67mno data
Mukesh Singh
CFO, Director of Finance & Whole-Time Director4.17yrs₹5.85m0.00018% 77.5k
Ritu Arora
Company Secretary & Compliance Officerno data₹2.28mno data
Yogesh Misra
Director of Works & Whole-Time Director1.58yrs₹3.81m0.0012% 508.3k
Mendu Pani
Additional General Manager of Adminno datano datano data
Basant Kumar
Executive Director of Corporate Communication2.5yrsno datano data
Sunil Gupta
Chief General Manager of Works2.5yrsno datano data
Surajit Dutta
Chief General Manager of Finance & HQ2.5yrsno datano data
Parag Verma
Chief General Manager of Business Development2.5yrsno datano data
Bhuvaneswari Krishnan
Chief General Manager of Finance & Projects2.5yrsno datano data

2.5yrs

Average Tenure

59yo

Average Age

Experienced Management: IRCON's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sunil Chaudhary
Chairman & MD3.75yrs₹5.67mno data
Mukesh Singh
CFO, Director of Finance & Whole-Time Director4.17yrs₹5.85m0.00018% 77.5k
Yogesh Misra
Director of Works & Whole-Time Director1.58yrs₹3.81m0.0012% 508.3k
Shyam Gupta
Director of Projects & Whole-Time Directorno datano datano data
Chitta Venkataramana
Independent Part-Time Non-Official Director2.83yrs₹356.00kno data
Narinder Raina
Independent Part-Time Non-Official Director2.75yrs₹70.00kno data
Ashok Ganju
Independent Part-Time Non-Official Director2.33yrs₹396.00kno data
Hari Gupta
Government Nominee Part-Time Official Director1.17yrsno datano data

2.8yrs

Average Tenure

58yo

Average Age

Experienced Board: IRCON's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Ircon International Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ircon International Limited
  • Ticker: IRCON
  • Exchange: NSEI
  • Founded: 1976
  • Industry: Construction and Engineering
  • Sector: Capital Goods
  • Market Cap: ₹43.076b
  • Shares outstanding: 470.26m
  • Website: https://www.ircon.org

Number of Employees


Location

  • Ircon International Limited
  • C-4, District Centre
  • Saket
  • New Delhi
  • Delhi
  • 110017
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IRCONNSEI (National Stock Exchange of India)YesEquity SharesININRSep 2018
541956BSE (Mumbai Stock Exchange)YesEquity SharesININRSep 2018

Biography

Ircon International Limited, together with its subsidiaries, provides construction services in India and internationally. The company’s services include construction of new railway lines; rehabilitation/conversion of existing lines, station buildings and facilities, and bridges; regirdering of railway bridges, tunnels, and signaling and telecommunication networks; and railway electrification works. It is also involved in the wet leasing of locomotives; and setting up of production units for manufacture rolling stock, maintenance depots/workshops, concrete sleepers, and track components on turn-key basis. In addition, the company engages in the construction of roads and highways; bridges and flyovers; and commercial, institutional, industrial, and residential complexes, as well as airport hangers, station buildings and facilities, hospitals, business centers, workshops/warehouses, etc. Further, it provides electrification services; turnkey solutions for signaling and communication projects; and supplies plant and machinery for workshops, high speed lightweight passenger cars, and diesel electric locomotives, as well as leases and maintains diesel locomotives. The company was formerly known as Indian Railway Construction Company Limited. Ircon International Limited was incorporated in 1976 and is headquartered in New Delhi, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 12:38
End of Day Share Price2020/07/03 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.