Ircon International Ltd. was listed on the NSE on September 28, 2018. In the last five years, the stock has given a massive return of more than 280% to its investors. Will IRCON continue to provide such great returns in the future as well? Let’s explore Ircon International’s growth potential and IRCON share price target from 2025 to 2050 in this article.
About Ircon International Ltd
Ircon International Limited is an Indian government-owned company that specializes in railway and infrastructure projects. It was established in 1976 and operates under the Ministry of Railways. IRCON works on building and upgrading railways, highways, bridges, and other infrastructure in India and other countries.
IRCON Business Model
- Railway Projects: IRCON earns money by constructing railway tracks, bridges, tunnels, and stations in India and other countries. It gets contracts from the government and private companies.
- Highway and Road Construction: IRCON builds highways, expressways, and other roads.
- Electrification Work: IRCON makes money by installing and maintaining railway electrification systems, which help trains run on electricity instead of diesel.
- International Projects: IRCON works on railway and infrastructure projects in other countries, earning money by providing engineering and construction services.
- Real Estate Development: IRCON earns money by developing commercial and residential buildings, mainly on land owned by Indian Railways.
- Consultancy Services: IRCON provides expert advice and project management services to other companies and governments, earning revenue from consultancy fees.
IRCON Fundamental Analysis
| Stock Name | Ircon International Ltd. |
|---|---|
| NSE Symbol | IRCON |
| Market Cap | ₹ 14945 Cr. |
| 52W High | ₹ 352 |
| 52W Low | ₹ 134 |
| Stock P/E | 19.6 |
| Book Value | ₹ 65.7 |
| Dividend Yield | 1.91 % |
| ROCE | 18.2 % |
| ROE | 16.4 |
| Face Value | ₹ 2.00 |
| Industry PE | 20.4 |
| Price to book value | 2.48 |
| Debt to equity | 0.55 |
| PEG Ratio | 1.26 |
| Quick ratio | 1.57 |
| Shareholders | March 2023 | March 2024 | March 2025 |
|---|---|---|---|
| Promoters | 73.18% | 65.17% | 65.17% |
| FIIs | 3.99% | 4.58% | 4.11% |
| DIIs | 1.87% | 1.31% | 1.57% |
| Government | 0.26% | 0.26% | 0.28% |
| Public | 20.71% | 28.66% | 28.88% |
| No. of Shareholders | 2,97,623 | 9,31,492 | 12,46,917 |
Key Factors Driving IRCON’s Future Growth
- Government Infrastructure Projects: IRCON benefits from large government projects such as railways, highways, and bridges, which ensures a consistent flow of work.
- Strong Order Book: IRCON has a strong pipeline of projects, ensuring long-term revenue visibility and stability.
- Focus on High-Speed Rail: IRCON is involved in high-speed rail projects such as bullet trains, which will help drive its growth in the coming years.
- Government Support: As a government-backed company, IRCON receives financial and operational support, which aids in the sale of large projects.
- Growing Development: As cities grow, so does the demand for better railway and road infrastructure, which benefits IRCON.
- Technological Advancements: IRCON employs advanced construction techniques and technology to complete projects faster and at a lower cost.
- Public-Private Partnerships (PPPs): IRCON collaborates with private players to fund and execute infrastructure projects, allowing it to expand its operations.
- Strong Financials: IRCON has a strong financial position, allowing it to take on large projects without financial constraints.
- Rising Demand for Transport: As India’s population grows, so will the demand for better rail and road networks, opening up new opportunities for IRCON.
- Metro Rail Expansion: IRCON is working on metro projects in several cities, which will be a major driver of its future growth.
- Upgrading the Existing Rail Network: IRCON is working on electrification, track doubling, and railway station progress to ensure continuous project inflow.
Pros of IRCON
- Strong Sales Growth: Ircon has achieved a strong sales growth of 32% CAGR over the last three years.
- Strong Profit Growth: Ircon has achieved a strong profit growth of 33% CAGR over the last three years.
- Low PE Ratio Compared to Peers: Ircon has a PE ratio of 19.6, which is lower than the industry average of 20.4, making it relatively undervalued and potentially a good investment opportunity.
- Decrease in Institutional Confidence: DIIs have reduced their holding to 4.11% in March 2025 from 4.09% in December 2024 while FIIs have reduced their holding to 1.57% in March 2025 from 1.44% in December 2024, indicating a decline in institutional confidence in the company’s future growth prospects.
Cons of IRCON
- Poor Profit Growth – IRCON profit has grown at a CAGR of just 2% over the last ten years, showing weak earnings growth over time.
IRCON Ltd Balance Sheet
| Particulars | March 2024 | March 2024 | Sept 2024 |
|---|---|---|---|
| Equity Capital | 188 | 188 | 188 |
| Reserves | 5,023 | 5,683 | 5,990 |
| Borrowings | 1,505 | 2,570 | 3,385 |
| Other Liabilities | 8,821 | 9,004 | 8,310 |
| Total Liabilities | 15,537 | 17,445 | 17,872 |
| Fixed Assets | 1,825 | 1,736 | 1,725 |
| CWIP | 19 | 549 | 1,080 |
| Investments | 1,049 | 1,553 | 2,044 |
| Other Assets | 12,644 | 13,607 | 13,022 |
| Total Assets | 15,537 | 17,445 | 17,872 |
By the end of 2025, the IRCON share price is expected to be around ₹210 in normal conditions. In a bear market, it might be ₹200, and in a bull market, it may cross its 52-week high of ₹250.
| IRCON Share Price Target 2025 | Rupees (₹) |
|---|---|
| 1st Target | 200 |
| 2nd Target | 210 |
| 3rd Target | 250 |
In 2026, the IRCON share price is expected to be around ₹255 in a normal situation. In a bear market, it might be ₹240, and in a bull market, it may cross ₹330.
| IRCON Share Price Target 2026 | Rupees (₹) |
|---|---|
| 1st Target | 240 |
| 2nd Target | 255 |
| 3rd Target | 330 |
According to our analysis, the IRCON share price is expected to be around ₹310 in 2027. In a bear market, it might be ₹290, and in a bull market, it may cross ₹420.
| IRCON Share Price Target 2027 | Rupees (₹) |
|---|---|
| 1st Target | 290 |
| 2nd Target | 310 |
| 3rd Target | 420 |
According to our analysis, the IRCON share price may trade near ₹390 by 2028; bearish conditions could pull it down to ₹350, while a strong bull run might lift it to ₹550.
| IRCON Share Price Target 2028 | Rupees (₹) |
|---|---|
| 1st Target | 350 |
| 2nd Target | 390 |
| 3rd Target | 550 |
In a normal situation, the IRCON share price is projected to be approximately ₹500 in 2029. In a bear market, the value may be as low as ₹420, while in a bull market, it may rise to ₹720.
| IRCON Share Price Target 2029 | Rupees (₹) |
|---|---|
| 1st Target | 420 |
| 2nd Target | 500 |
| 3rd Target | 720 |
In a normal situation, the IRCON share price is projected to be approximately ₹610 in 2030. In a bear market, the value may be as low as ₹500, while in a bull market, it may rise to ₹930.
| IRCON Share Price Target 2030 | Rupees (₹) |
|---|---|
| 1st Target | 500 |
| 2nd Target | 610 |
| 3rd Target | 930 |
By 2035, the IRCON share price is projected to be around ₹1580 under normal conditions. In adverse markets, the price could fall to ₹1000, while favorable conditions might push it up to ₹2790.
| IRCON Share Price Target 2035 | Rupees (₹) |
|---|---|
| 1st Target | 1000 |
| 2nd Target | 1580 |
| 3rd Target | 2790 |
Under normal conditions, the IRCON share price might hit ₹2780 by 2040. A bearish trend could lower it to ₹2000, whereas a bullish surge could raise it to ₹8360.
| IRCON Share Price Target 2040 | Rupees (₹) |
|---|---|
| 1st Target | 2000 |
| 2nd Target | 2780 |
| 3rd Target | 8360 |
In 2050, the IRCON share price is expected to be around ₹9500 in a normal situation. In a bear market, it might be ₹8000, and in a bull market, it may go up to ₹50130.
| IRCON Share Price Target 2050 | Rupees (₹) |
|---|---|
| 1st Target | 8000 |
| 2nd Target | 9500 |
| 3rd Target | 50130 |
| Years | Target Price |
|---|---|
| IRCON Share Price Target 2025 | ₹200 to ₹250 |
| IRCON Share Price Target 2026 | ₹240 to ₹330 |
| IRCON Share Price Target 2027 | ₹290 to ₹420 |
| IRCON Share Price Target 2028 | ₹350 to ₹550 |
| IRCON Share Price Target 2029 | ₹420 to ₹720 |
| IRCON Share Price Target 2030 | ₹500 to ₹930 |
| IRCON Share Price Target 2035 | ₹1000 to ₹2790 |
| IRCON Share Price Target 2040 | ₹2000 to ₹8360 |
| IRCON Share Price Target 2050 | ₹8000 to ₹50130 |
Conclusion
IRCON has shown strong growth over the past five years, delivering impressive returns to investors. With government-backed projects, railway expansion, international contracts, and a strong financial position, IRCON is well-positioned for future growth. The company benefits from a strong order book, technological advancements, and increasing demand for transportation infrastructure. For more updates, you can visit IRCON official website.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.
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