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Shares of Ircon International surge post Sri Lanka Railways deal!

25 September 20232 mins read by Angel One
Shares of the company have experienced a remarkable rally, soaring more than 170% in the past six months.
Shares of Ircon International surge post Sri Lanka Railways deal!
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The Indian benchmark indices ended a highly volatile session with slight gains, having experienced modest gains and losses throughout the session. The BSE Sensex edged up by 0.02% to 66,023 level at the close. The Nifty 50 index edged up by 0.01% to a level of 19,674.

Shares of Ircon International Ltd exhibited positive momentum and surged by more than 4% during the initial trades of the session, reaching a day’s high at Rs 147.30 per share on the BSE. The company has officially declared the execution of a contract agreement with Sri Lanka Railways, Ministry of Transport, Sri Lanka. This contract involves the procurement of design, installation, testing, commissioning, and certification of a signalling and telecommunication system.

It covers the stretch from Maho Junction (inclusive) to Anuradhapura (exclusive) under the Indian Line of Credit. The total contract value amounts to USD 14.89 million, approximately equivalent to Rs 122 crore. The company is committed to completing the project within a timeline of 24 months from the date of contract signing.

Shares of the company have experienced a remarkable rally, soaring more than 170% in the past six months. Despite rail stocks already enjoying a rally due to a robust government order book and ongoing railways modernization initiatives, the recent announcement of a shipping and rail transportation corridor connecting countries across the Middle East, South Asia, and Europe during the G20 Summit in New Delhi has significantly heightened enthusiasm in the sector.

Ircon International Limited (IRCON) embarked on its business journey in 1976 with a primary focus on railway construction. However, it began diversifying its operations evolving into an integrated engineering and construction Public Sector Undertaking (PSU). It specializes in executing large and technologically complex infrastructure projects across a spectrum of sectors, including railways, highways, and more.

Keep a close eye on this stock for the upcoming sessions!

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.

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