Ircon Intl. (IRCON)

FairStock Score: 34/100 — RISKY

Score breakdown: P/E: 1/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I'm wary of civil construction unless the price offers a deep discount. Ircon trades at ₹124.79 for an ₹11,737 Cr market cap, with P/E 19.02 and P/B 1.77 against book value ₹70.68. The top line has grown: 5-year revenue CAGR 14.82% and sales growth 14.40%. But profit growth is -43.40%, and the latest quarter's ₹2,119 Cr sales produced only ₹100 Cr net profit. That tells me the business lacks the durable pricing power or cost discipline I want. ROE 9.72% and ROCE 11.60% are modest; debt/equity 0.86 is high for a contractor. Free cash flow is -₹1,056 Cr, so reported profits are not converting into cash—a Graham red flag. The Graham Number is ₹99.41, while the stock is ₹124.79, giving a negative margin of safety of -44.46%. I'm paying more than the conservative intrinsic value. Dividend yield 1.76% and promoter holding 65.17% are positives, but they don't offset the risks. The 52-week range of ₹101.45–₹186.44 shows volatility, and today's price is well below the high yet still above my careful value. Piotroski F-Score 6/9 is middling, while Altman Z-Score 1.34 and negative EV/EBITDA of -38.43 suggest balance-sheet and operating stress. FairStock Score 34/100 (RISKY) confirms caution. At this price, Ircon is not a Buffett-style bargain; it's a cyclical contractor with weak cash generation and falling profits. I'd wait for cash flows to turn positive, ROE/ROCE to improve, and a price below the Graham Number before considering it.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer