IRCON International: Axis Securities lists the stock as top 'momentum pick', sees up to 17% upside – here's why

livemint.com:

IRCON International in a year, brokerage house Axis Securities has chosen it as one of its top 'momentum picks'. The brokerage has set target of ₹313-325 for the stock, implying an upside of up to 17 percent. As per the brokerage, IRCON on a daily chart has broken above the "Rounded Bottom" pattern at ₹282, signaling a continuation of its medium-term uptrend.

Its volume declines during pattern formation, but increases at breakout, indicating an influx of market participation. The stock is exhibiting a pattern of higher high-low formations on a daily chart while maintaining a position above a medium-term upward-sloping trendline, suggesting a sustained uptrend. The stock's ability to maintain levels above key short and medium-term moving averages (20, 50, 100, and 200 days) signals a positive bias in its trajectory, noted Axis Securities.

The daily Relative Strength Index (RSI) is holding above its reference line, indicating positive bias in the stock. Following the breakout from the Rounded Bottom pattern, the stock is expected to continue a medium-term uptrend, for the target set at ₹313-325, predicted the brokerage. In the March quarter (Q4FY24), the engineering and construction company posted a marginal 3.8 percent decline YoY in its consolidated net profit to ₹246.8 crore as against ₹256.49 crore in the same period a year ago.

Meanwhile, its consolidated revenue for the operations for the March quarter (Q4 FY24) also declined a percent to ₹3,742.71 crore versus ₹3,780.66 crore last year in the same period. The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached ₹424 crore, marking a 14.7 percent YoY increase from ₹370 crore in Q4FY23. This growth reflects the company's improving