Author: Prashant Marathe
Date Published: May 21, 2025
🧾 At a Glance
- Total Income (Q4): ₹3,515.25 Cr
- Net Profit (Q4): ₹211.78 Cr
- EPS (Q4): ₹2.24
- CMP: ₹189
- EduFair Value: ₹235–₹255
👉 Verdict: PSU infra is boring… until it’s not.
🏗️ About the Company
IRCON International Ltd is a Mini Ratna PSU under the Ministry of Railways. It’s one of India’s largest railway EPC contractors, known for:
- 🔧 Building railway lines, bridges, stations
- 🌏 International railway projects (Nepal, Bangladesh, Malaysia)
- 🏗️ Metro + highway + tunnelling contracts
It’s not sexy. It’s steel-and-concrete serious. And that’s why it’s working.
📊 Q4 FY25 Snapshot
| Metric | ₹ Cr |
|---|---|
| Total Income | 3,515.25 |
| Net Profit | 211.78 |
| EPS (Basic) | ₹2.24 |
| Net Margin | ~6.02% |
Steady. Predictable. Profitable. And — typical of PSUs — massively undervalued.
🧠 EduInvesting Take
“IRCON makes ₹3,500 Cr a quarter, earns ₹200 Cr profit, and trades at ₹189. That’s not a stock. That’s a conspiracy.”
IRCON is:
✅ Government-backed
✅ Orders visibility for 3+ years
✅ Debt-light
✅ Dividend-paying
✅ Trading at 8x earnings
And nobody’s talking about it because… infra isn’t cool?
🧮 EduFair Value Calculation
- FY25 EPS (annualized from Q4): ₹2.24 × 4 = ₹8.96
- P/E (Infra PSU fair): 25x (due to growth visibility)
✅ EduFair Value = ₹224 – ₹255
CMP = ₹189 → Still 20–35% undervalued
⚠️ Risks
- 🏛️ PSU tag = volatile governance
- 🕸️ Tender delays, political red tape
- 🧾 Execution delays = margin shrink
- 💤 Market ignores it unless a rally is triggered
💸 CMP vs FV
| Metric | Value |
|---|---|
| CMP | ₹189 |
| Fair Value | ₹235–₹255 |
| Estimated Upside | ~25% |
| Dividend Yield | ~2% (stable) |
🏁 EduFinal Word
IRCON is:
- Not flashy ✅
- Not risky ✅
- Not overpriced ✅
This is what a long-term portfolio base layer looks like.
Edu Verdict:
Buy. Sit. Collect dividends. Re-rate will come quietly and quickly.
