IRCON International, a railway PSU, saw its share price rise over 4% in early trade on July 21 despite weak market conditions. The stock opened at ₹192.10, up from its previous close of ₹186.95, and touched an intraday high of ₹195. By 10 AM, it was trading 2.46% higher at ₹191.55.
Why IRCON Shares Are Rising
The surge in IRCON’s stock price comes after the company announced major project wins. On July 18, after market hours, IRCON revealed it had received a letter of award for a significant project from Rail Vikas Nigam Limited (RVNL). This project, valued at ₹756 crore, will be executed in a joint venture with JPWIPL. IRCON holds a 70% stake worth ₹529 crore. The work involves roadbed construction, minor bridges, buildings, track installation, and other civil and electrical works in the Indore-Budni section of the West Central Railway, Madhya Pradesh.
In addition, IRCON secured two large orders from the Mumbai Metropolitan Region Development Authority (MMRDA), worth ₹471.30 crore and ₹642.44 crore, respectively.
The ₹471 crore project includes the design, supply, installation, and commissioning of a 220 kV receiving substation, complete 25kV overhead catenary system, power distribution systems, SCADA systems, and lift and escalator works for Mumbai Metro Line 5. This contract also includes five years of comprehensive maintenance.
The ₹642 crore order covers power supply, traction systems, electrical and mechanical works, and lifts and escalators for Mumbai Metro Line 6, also with five years of maintenance.
Stock Performance
IRCON’s stock appears ready to break its three-day losing streak. However, the stock has faced pressure this year, falling 12% overall. In July alone, it is down by over 5%, after gaining more than 6% in June and jumping 25% in May.
IRCON hit its 52-week low of ₹134.30 on March 3, 2025, compared to its 52-week high of ₹329.50 on July 19, 2024.
With these fresh orders and a strong project pipeline, investor sentiment towards IRCON has improved, giving the stock a much-needed boost.
