Hello friends, welcome to a new video. Friends, if you are holding the IRCON International Limited share and after seeing today’s 9% rise you are thinking about doing profit booking, then this video is going to be very important for you.
And if you are planning to buy IRCON after this rise thinking that the stock has finally reversed because it has been falling for a long time, then this video is also very important for you.
One thing I would definitely like to tell you is that any share—whether it is expensive or cheap, whether it has been falling for a long time or rising for a long time—always needs an important level for reversal.
If you look at the IRCON share, you will notice that in the last one year it has not given any meaningful return. It has mostly been falling continuously. So such stocks require a specific level to cross before they can start moving upward again.
In this video, you will get that important point. You can simply note it down. Similarly, when a stock rises, there is also a point from where it can start falling again. That level will also be explained in this video.
So watch the entire video carefully so that you can potentially make money from IRCON share in the coming time.
In the video description, you will also find a link to our website, where we share stock charts on a page. For example, we have already shared charts for Indian Railway Finance Corporation (IRFC). You can check the main levels there. Now let’s talk about IRCON share.
Promoter Holding
First, let’s discuss the promoter holding.
Promoters are basically the owners of the company, the ones who have the highest investment. In IRCON, the promoter holding is 65%, which is a very good sign.
Apart from that:
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FIIs hold 4.54%
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DIIs hold 2%
So overall, around 7% holding belongs to big institutional players. The rest mostly belongs to the company promoters.
We need to observe whether FIIs and DIIs increase their investment in the future. They have been slowly adding money, but not aggressively yet. When their combined holding increases to around 10–15%, it would indicate stronger institutional interest in the company.
Public Holding
About 26% of the shares are held by the public.
Overall, the holding pattern is okay, but it would be a positive signal if FIIs and DIIs increase their holdings further.
Fundamentals
Now let’s talk about the fundamentals.
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The revenue of the company is very good.
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The net profit is also strong.
However, when we talk about debt, the company’s debt has been increasing year after year, which is not a good sign. Ideally, debt should decrease, not increase. If it starts decreasing in the future, it could become a positive sign for a stock reversal.
Cash Flow
Another important point is cash flow.
For the last three years, the company’s cash flow has been negative. This means the company is showing profit on paper, but it is not converting that profit into actual cash flow.
In simple terms:
The company is doing business and showing profit, but the cash is not coming in properly. This could mean operational challenges.
So it is very important that cash flow turns positive in future quarterly or yearly reports.
Balance Sheet
Looking at the balance sheet:
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Market Capitalization: ₹188.10 crore
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Reserves & Surplus: Strong
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Long-term borrowing: ₹4134 crore
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Trade payable: ₹1257 crore
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Current investment: ₹410 crore
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Inventory: ₹90.83 crore
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Trade receivable: ₹13.28 crore (money the company still has to receive)
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Cash & cash equivalents: ₹4781 crore
So overall, the company is cash-rich.
Key Fundamental Points to Watch
For a strong reversal in this stock, watch these factors:
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Cash flow should turn positive.
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FIIs and DIIs should increase their holdings.
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Debt should decrease and the debt-to-equity ratio should improve.
Technical Analysis
Now let’s discuss the technical levels.
The stock has already reached the 0.68 Fibonacci retracement level, which is an important technical point.
The major resistance zone is between ₹179 – ₹184.
This will be a very strong resistance level with heavy supply. Until the stock breaks above ₹184 and sustains there for at least 2–3 months or forms strong bullish weekly candles with a Bollinger Band blast, it is not suitable for long-term investment.
Short-Term Levels
In the current scenario, because of this reversal move, the stock might give a short-term target soon.
However, I would not recommend buying right now because the stock is still in a downtrend and could trap investors anytime.
For those who already hold the stock and want to book profit:
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₹161
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₹157
These could be important levels where the stock may again try to reverse.
If the stock crosses and sustains above ₹179–₹184, then the next potential targets could be:
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₹223
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₹268
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₹342
But this will only happen if the stock sustains above ₹184.
Lower Buying Levels
For fresh buying, I would only consider the stock if it falls near:
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₹87
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₹79
But even at those levels, we must confirm fundamental improvements like positive cash flow, better institutional holding, and reduced debt. And before taking any trade, always consult your financial advisor.
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