Check Before You Invest : Ircon International Ltd

Snapshot

Q.1 Which industry/sub-sector does Ircon International Ltd belong to?

Ircon International Ltd belongs to the Construction & Infrastructure sector, operating specifically within the Engineering - Construction segment.

Q.2 Is Ircon International Ltd a good quality company?

Ircon International Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is Ircon International Ltd undervalued or overvalued?

Ircon International Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is Ircon International Ltd a good buy now?

Ircon International Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of Ircon International Ltd?

Ircon International Ltd revenue growth is -14% for FY-2025, which is below its 5-year CAGR of 14.82%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of Ircon International Ltd?

Ircon International Ltd Return on capital employed is 12.69% for FY-2025, which is below its 5-year historical median of 18.66%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of Ircon International Ltd?

Ircon International Ltd Return on Asset is 3.97%, which is below its 5-year historical median of 4.63%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of Ircon International Ltd?

Ircon International Ltd Return on equity is 11.93% for FY-2025, which is below its 5-year historical median of 13.06%, indicating the business is making worse use of its shareholders capital.

Q.5 Cash conversion cycle of Ircon International Ltd?

Ircon International Ltd Cash conversion cycle is -1 days, below its 5-year historical median of -0 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.59	0.59
ROE	11.93	13.06
ROCE	12.69	18.66
Cash Conversion Cycle	-1 days	-

Q.6 Gross Profit margin of Ircon International Ltd?

Ircon International Ltd Gross profit margin which is the profit after deduction of direct costs, is 9.3% for FY-2025, which is below its 5-year median of 9.8%, indicating decreasing margins.

Q.7 Operating Profit Margin of Ircon International Ltd?

Ircon International Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 7.85% for FY-2025, which is in line with its 5-year median of 8.12% indicating stable margins.

Q.8 Net Profit Margin of Ircon International Ltd?

Ircon International Ltd Net Profit Margin is 6.76% for FY-2025, is below with its 5-year median of 7.38%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	9.3	9.8
Operating Profit Margin	7.85	8.12
Net Profit Margin	6.76	7.38

Q.9 Debt to Equity ratio of Ircon International Ltd?

Ircon International Ltd Debt-to-Equity ratio is 0.67, which is above with the industry average of 0.39, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of Ircon International Ltd?

Ircon International Ltd Debt to cash flow from operations is -3.84, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of Ircon International Ltd?

Promoters hold 65.17% of the Ircon International Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of Ircon International Ltd vs industry peers?

Ircon International Ltd revenue CAGR is 14.82%, compared to the industry median CAGR of 9.45%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	-14	9.5
Gross Profit Growth	-24.2	14.9
Operating Profit Growth	-40.2	11.1
Net Profit Growth	-21.7	18.3

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.59	0.68
ROE	11.93	8.34
ROCE	12.69	11.34
Cash Conversion Cycle (days)	-0.88	57

Valuation & price assessment

Q.1 Stock return of Ircon International Ltd over the last decade?

Over the last 5 year(s), the stock has delivered a CAGR of 28.59% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	-	28.6%	23.1%	0.6%

Q.3 Valuation ratios of Ircon International Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	23.27	16.56	21.62
Price to Book	2.19	2.39	1.75
Price to Sales	1.54	1.48	1.50
EV to EBITDA	12.41	11.81	11.53

Check more companies

1. IRB Infra.&Developer

2. Kalpataru Projects

3. KEC International

4. Techno Electric &Eng

5. Ircon International

10. NCC

Check trending companies

1. Info Edge (India) Ltd.

2. Tata Motors Passenger Vehicles Ltd.

3. Bajaj Finserv Ltd.

4. Ultratech Cement Ltd.

5. Titan Company Ltd.