Rs 24,253 crore order book: Railway infrastructure company signs MoUs worth Rs 89,00,00,000 with Northeast Frontier Railway
The stock gave multibagger returns of 285 per cent in just 2 years whereas BSE Sensex Index is up by 29.2 per cent.
Ircon International Limited (IRCON) has secured a significant contract from Northeast Frontier Railway for the outsourcing of Traction Distribution (TRD) Maintenance & Breakdown attention work. The contract, awarded by a domestic entity, encompasses 20 OHE Depots across Tinsukia and Lumding Divisions. The total contract value is approximately Rs 89 Crores, with each contract valued at approximately Rs 39 Crore and Rs 50 Crore, respectively. The nature of these contracts is domestic, and they are not Cost Plus contracts. The order(s)/contract(s) are to be executed within a 24-month timeframe.
Earlier, IRCON-PARAS-PCM, a joint venture between IRCON, Paras Railtech, and PCM Strescon, has won a Rs 7,50,82,79,068.08 contract from Rail Vikas Nigam Ltd (RVNL) to build a 125 km broad gauge ballastless track between Rishikesh and Karanprayag in Uttarakhand. IRCON holds 60 per cent stake, Paras Railtech 25 per cent and PCM Strescon 15 per cent. The project is expected to be completed in 42 months.
About the Company
Ircon International is a leading Indian infrastructure company specializing in railways and highways. Founded in 1976, it has executed over 400 domestic and 128 international projects. Offering engineering, procurement, construction, and project management services, Ircon is involved in both public and private sector projects.
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Order Book Update: The total order book as of September 30, 2024, stands at Rs 24,253 crore.
The break-up of which is as follows:
- Railways – Rs 18,959 crore
- Highways – Rs 5,210 crore and
- Others – Rs 84 crore.
IRCON is a PSU company with a market cap of over Rs 19,000 crore and reported positive numbers in its Quarterly Results (Q2FY25) and half-yearly results (H1FY25). The stock gave multibagger returns of 285 per cent in just 2 years whereas BSE Sensex Index is up by 29.2 per cent. Investors should keep an eye on this railway construction company’s stock.
Disclaimer: The article is for informational purposes only and not investment advice.