Ircon International Valuation

Q: What is the Fair Price of IRCON when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

IRCON (₹188.77) is trading above our estimate of [[fair value]] (₹52.42)

Is IRCON undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of IRCON when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: IRCON (₹188.77) is trading above our estimate of fair value (₹52.42)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for IRCON?

Key metric: As IRCON is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for IRCON. This is calculated by dividing IRCON's market cap by their current earnings.
What is IRCON's PE Ratio?
PE Ratio	19.3x
Earnings	₹9.21b
Market Cap	₹177.54b

IRCON key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.4x
Enterprise Value/EBITDA	18.5x
PEG Ratio	3.4x

Price to Earnings Ratio vs Peers

How does IRCON's PE Ratio compare to its peers?

The above table shows the PE ratio for IRCON vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	37.6x
TECHNOE Techno Electric & Engineering	50x	28.3%	₹158.3b
500294 NCC	21.1x	21.8%	₹175.3b
KPIL Kalpataru Projects International	37.1x	29.5%	₹194.1b
PRAJIND Praj Industries	42.5x	24.4%	₹127.7b
IRCON Ircon International	19.3x	5.7%	₹177.5b

Price-To-Earnings vs Peers: IRCON is good value based on its Price-To-Earnings Ratio (19.3x) compared to the peer average (37.6x).

Price to Earnings Ratio vs Industry

How does IRCON's PE Ratio compare vs other companies in the IN Construction Industry?

6 Companies	Price / Earnings	Estimated Growth	Market Cap
CCCL Consolidated Construction Consortium	0.9x	n/a	US$78.86m
533152 MBL Infrastructures	2.5x	n/a	US$68.56m
ATLANTAA Atlantaa	2.5x	n/a	US$50.22m
SKIL SKIL Infrastructure	0.1x	n/a	US$14.31m

6 Companies		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: IRCON is good value based on its Price-To-Earnings Ratio (19.3x) compared to the Indian Construction industry average (25.2x).

Price to Earnings Ratio vs Fair Ratio

What is IRCON's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

IRCON PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	19.3x
Fair PE Ratio	32.3x

Price-To-Earnings vs Fair Ratio: IRCON is good value based on its Price-To-Earnings Ratio (19.3x) compared to the estimated Fair Price-To-Earnings Ratio (32.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst IRCON forecast and predictions for the stock price in 12 month’s time.
Date	Share Price	Average 1Y Price Target	Dispersion	High	Low	1Y Actual price	Analysts
Current	₹188.77	₹202.67 +7.4%	0.8%	₹205.00	₹201.00	n/a	3
Nov ’25	₹220.18	₹241.67 +9.8%	12.4%	₹272.00	₹201.00	n/a	3
Oct ’25	₹225.16	₹241.67 +7.3%	12.4%	₹272.00	₹201.00	n/a	3
Sep ’25	₹261.10	₹241.67 -7.4%	12.4%	₹272.00	₹201.00	n/a	3
Aug ’25	₹287.15	₹283.33 -1.3%	26.5%	₹382.00	₹200.00	n/a	3
Jul ’25	₹271.25	₹281.33 +3.7%	27.5%	₹382.00	₹194.00	n/a	3
Jun ’25	₹270.80	₹247.67 -8.5%	15.5%	₹281.00	₹194.00	n/a	3
May ’25	₹250.55	₹214.67 -14.3%	25.5%	₹281.00	₹147.00	n/a	3
Apr ’25	₹227.20	₹214.67 -5.5%	25.5%	₹281.00	₹147.00	n/a	3
Mar ’25	₹227.50	₹214.67 -5.6%	25.5%	₹281.00	₹147.00	n/a	3
Feb ’25	₹228.60	₹177.00 -22.6%	32.2%	₹234.00	₹120.00	n/a	2
Jan ’25	₹174.55	₹148.00 -15.2%	18.9%	₹176.00	₹120.00	n/a	2
Dec ’24	₹170.30	₹148.00 -13.1%	18.9%	₹176.00	₹120.00	n/a	2
Nov ’24	₹137.75	₹145.00 +5.3%	21.4%	₹176.00	₹114.00	₹220.18	2
Oct ’24	₹144.85	₹145.00 +0.1%	21.4%	₹176.00	₹114.00	₹225.16	2

Analyst Forecast: Target price is less than 20% higher than the current share price.

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