65% Dividend By Navratna PSU: Railway Stock Below Rs 300 To Turn Ex-Dividend On September 5; PL Says BUY

Navratna PSU railway company, IRCON International will be in focus on Thursday, September 5, as the stock will turn ex-dividend for its upcoming dividend payout of 65%. In a year, the stock has more than doubled, giving 100% returns to its investors. Ahead of the dividend reward, Prabhudas Lilladher has recommended BUY on IRCON.

IRCON International Share Price:

Ahead of ex-dividend date, IRCON share ended at Rs 256.30 apiece, marginally up on BSE on September 4, 2024. The company's market cap is at Rs 24,105.42 crore.

YTD, the stock is up by 47% on BSE, while in a year, it has surged by 100.47%.

IRCON International Dividend:

The company is scheduled to deliver a final dividend of Rs 1.30 per share or 65% for FY24. Earlier, the company paid up to 90% dividend or Rs 1.80 per share to investors for the fiscal.

Overall, in FY24, the dividend payout is going to be 155% worth Rs 3.1 per share.

For the final dividend, the ex-dividend date is September 5. Hence, only those investors will be eligible who will be holding IRCON shares by the end of the ex-date

IRCON International BUY/SELL:

In its latest report, Prabhudas Lilladher said, "IRCON overall, maintaining the strong uptrend, has recently witnessed a short correction, and has taken support near the important 100 period MA, which has been holding since April 2023, and has indicated a pullback with a positive candle formation on the daily chart. Moving past the significant 50EMA level of 280 will improve the bias once again and anticipate a further rise in the coming days.

Further, the brokerage added that the e RSI has recently shown a trend reversal, signalling a buy, and hence supports our view of a positive bias.

"With decent volume participation witnessed, we recommend a buy in this stock for an upside target of 330 - 380, keeping a stop loss of 245," the brokerage said.

About IRCON International:

Ircon International Limited is a Navratna, Public Sector Enterprise and a leading turnkey Construction Company in the public sector known for quality, commitment, and consistency in terms of performance. The core competence of IRCON is in Railways and Highways & the company reports to Ministry of Railways.

The company has executed projects operated in the areas of Railway construction including ballast less track, electrification, tunneling, signal & telecommunication as well as leasing of locos, construction of roads, highways, commercial, industrial & residential buildings and complexes, airport runway and hangars, metro and mass rapid transit system, etc.

As of June 30, 2024, the company's order book stood at Rs 26,034 crore - of which - railway segment accounted the majority of the order pipeline to the tune of Rs 20,420 crore, while IRCON has orders worth Rs 5,531 crore in highways and Rs 83 crore in others.

In June 2024 quarter, total income stood at Rs 2,385 crore, as against Rs 2,828 crore in Q1FY24. While the company posted revenue from operations of Rs 2,287 crore in Q1FY25 as against Rs 2,764 crore in Q1FY24. Profit After Tax increased by 19.6% to Rs.224 crore in Q1FY25 as against Rs.187 crore in Q1FY24. EPS stands at Rs.2.38 per equity share of the face value of Rs.2/- per share.