infrastructure

Ircon International

IRCON · Nifty 50

₹140.72

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positioninfrastructure sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score50/100 (ADEQUATE). 3 positive flags, 3 concerns.
Historical Context46 similar technical setups. Average outcome: -9.7% decline. 0% positive.

Fundamental

50/100

ADEQUATE

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Ircon International scores 50/100 on fundamentals (adequate). Ircon International: BROAD EXPANSION regime.

Fundamental Score: 50/100 · ADEQUATE · 2 signals detected

DuPont Analysis

ROE 9.0% broken into three drivers. Each shows how efficiently the company generates returns.

ROE9.0%=
6.6%Net Margin
×
0.4xTurnover
×
3.2xLeverage

ROE of 8.96% is modest margin-driven and stable. Net margin of 6.6% × asset turnover of 0.43x × leverage of 3.2x.

What This Means

Net margin of 6.6% means the company keeps ₹6.6 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.43x means the company generates ₹0.43 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 3.2x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

12.2%

Operating

12.3%

Net

6.6%

improving

Gross margin 12.2% → operating margin 12.3% → net margin 6.6%. Margins are IMPROVING.

Financial Health

Earnings Quality

WEAK

Cash flow only covers -1.0x of net income — earnings quality is WEAK. Profit may not be converting to cash. Check receivables and inventory.

Debt Sustainability

ADEQUATE

Interest covered 3.2x — adequate buffer. Debt is manageable. Debt/EBITDA at 4.5x is high — monitor leverage.

Free Cash Flow

STRONG

FCF margin negative at -12.7% — spending more than earning. Check capex cycle.

Peer Comparison

Ircon International is compared against 10 peers in the infrastructure sector.

ADANIPORTSAFCONSCONCORDELHIVERYGESHIPGMRAIRPORTKECKPILLTNBCC

Key Watchpoints

🟢

Breaks above ₹148 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹134 (-5%)

Further downside risk

🟢

Infrastructure sector entering leadership

Sector rotation signal

Detected Patterns

➡️ Leverage Slowly Rising: Debt growing faster (32.9%) than equity (4.9%)
⚠️ Low Earnings Quality: Cash flow only -1.0x earnings — weak cash conversion

Risk Flags

🔴 1 Critical⚠️ 2 Warning✅ 3 Positive6 total flags
🔴Operating cash flow significantly below net income
Cash Flow

OCF is only -1.0x net income. Profit not converting to cash — aggressive accounting possible.

⚠️Working capital changes are 158% of operating cash flow
Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

⚠️Negative analyst consensus: underperform
Valuation

Analysts recommend selling. Mean: 3.7/5. Investigate why.

✅Receivables decreasing — 13.6% of revenue
Cash Flow

Collection cycle changing. Collection improving — positive for cash flow.

✅High promoter holding: 65%
Governance

Strong insider alignment. Promoters have significant skin in the game.

✅Price/Sales: 1.4x — reasonable revenue multiple
Valuation

Company not overvalued on revenue basis.

⚠️ 1 critical + 2 warning flags. Exercise caution.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio
21.4UNAVAILABLE
P/B Ratio
1.9HIGH
Market Cap
₹1272988.1L CrHIGH
From 52W High
68% of high
Sector Peers
10
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