Stocktwits - Despite trading nearly 47% below its 52-week high, IRCON International attracted attention from SEBI-registered analyst Karanraj Sonkusale, who identified the Navratna public sector giant as a promising swing trade and long-term opportunity.
Recent financials have shown some weakness. In the March quarter, IRCON posted a 10% year-on-year decline in revenue, while net profit fell 14%.
Operating margins also narrowed, reflecting cost pressures or execution challenges.
Still, the company met its annual revenue guidance and ended the fiscal year with a healthy order book worth ₹20,347 crore, heavily concentrated in core railway and highway segments — both critical focus areas in the government’s infrastructure roadmap.
On the technical front, Sonkusale observed early signs of stabilization and reversal in the stock’s trend.
IRCON was trading above its 20-day and 50-day simple moving averages (SMA) — often viewed as a bullish short- to mid-term indicator — though still below the 200-day SMA, a key resistance level for longer-term price action.
Momentum indicators such as the Relative Strength Index (RSI), approaching 70, and a positive MACD crossover pointed toward increasing buying strength, even as overbought conditions warranted some caution.
Additional signals, including a positive Chaikin Money Flow, a rising Commodity Channel Index (CCI), and an Average Directional Index (ADX) showing a forming trend, supported a view of accumulation and upward bias.
Sonkusale laid out a swing trading strategy with entry above ₹229, stop-loss at ₹213, and upside targets of ₹244 and ₹260, anticipating a breakout from the current consolidation range.
He acknowledged that analyst targets remained mixed for longer-term investors, but emphasized that IRCON’s strong fundamentals, sovereign backing, and well-diversified project pipeline were reasons to be optimistic.
Sonkusale advised market participants to track technical levels closely, remain alert to possible short-term corrections, and stay constructive on the stock’s potential recovery trajectory.
Data from Stocktwits shows that retail sentiment is ‘extremely bullish’ on this counter.
IRCON sentiment and message volume on May 22 as of 11:45 am IST. | source: StocktwitsIRCON shares fell 14% year-to-date (YTD).