Multibagger Railway Stock Secures Rs 1,096 Crore EPC Contract for Meghalaya Secretariat Complex: Stock Price Soars Over 5 per cent; FIIs Increases Stake

Ircon International Limited (IRCON) has been awarded a significant EPC contract by the Directorate of Urban Affairs, Government of Meghalaya. The project involves the construction of a new Secretariat Complex in New Shillong City, with a total contract value of approximately Rs 1,096 crores, including GST. IRCON's share of this joint venture with Badri Rai and Company amounts to Rs 285 crores. The project is set to be completed within 36 months. This development is a testament to IRCON's capabilities in handling large-scale infrastructure projects. The contract is domestic, with no related party transactions or promoter interest involved. As a multibagger stock, IRCON has shown a remarkable 235.15 per cent return over the past three years, despite a recent dip in its one-year performance.

Ircon International Limited (IRCON) began its operations in 1976 as a railway construction company and has since evolved into an integrated engineering and construction Public Sector Undertaking (PSU). The company specializes in executing large and technologically complex infrastructure projects across various sectors such as railways and highways. As of March 2025, IRCON's stock price stands at Rs 138.25, with a market capitalization of approximately Rs 13,204.84 crores. Over the past three years, IRCON has delivered a substantial 235.15 per cent return, marking it as a multibagger stock. Despite its recent one-year return of -36.13 per cent, the company's long-term growth trajectory remains noteworthy. The company has been maintaining a healthy dividend payout of 36 per cent.

In the Quarterly Results of Dec-24, the revenue stood at Rs 2,612.86 crore, reflecting a YoY decline of 10.81 per cent but a QoQ growth of 6.76 per cent from Rs 2,447.52 crore in Sep-24. The net profit for Dec-24 was Rs 86.59 crore, showing a YoY decline of 64.61 per cent and a QoQ drop of 57.96 per cent from Rs 205.95 crore in Sep-24. The net profit margin for Dec-24 was 3.31 per cent, compared to 8.41 per cent in Sep-24 and 8.35 per cent in Dec-23.

For the full-year FY24 results, the revenue stood at Rs 12,330.91 crore, reflecting a growth of 18.93 per cent from Rs 10,367.93 crore in FY23. The net profit for FY24 was Rs 763.40 crore, registering a decline of 2.27 per cent from Rs 343.88 crore in FY23. The net profit margin for FY24 stood at 2.79 per cent compared to 3.39 per cent in FY23.

As of December 2024, the shareholding pattern shows that promoters hold 65.17 per cent, FIIs hold 4.09 per cent increased from 3.94 per cent, DIIs hold 1.44 per cent, government holding is at 0.28 per cent, and the public holds 29.03 per cent.

With a PE ratio of 18x, the company trades at a fair valuation compared to the industry PE of 18x. The company has ROCE of 18.2 per cent and ROE of 16.4 per cent.  

Investors must keep this Small-Cap stock on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.