By

, ETMarkets.comLast Updated: Oct 13, 2026, 10:38:00 AM IST

Synopsis

Ircon International shares surged after the company secured an EPC contract worth Rs 862.46 crore from East Central Railway. The project involves track-related works, including laying and linking railway tracks and supplying materials for the third and fourth lines under the Son Nagar–Andal project.

Shares of Ircon International rallied 7% to hit an intraday high of Rs 111.68 during Tuesday’s trading session after the company secured an engineering, procurement and construction (EPC) contract worth around Rs 862.46 crore from East Central Railway.

In a regulatory filing, the company said it had received a Letter of Acceptance to execute track-related works for the construction of the third and fourth railway lines under the Son Nagar–Andal project.

The scope of work includes the supply of ballast and permanent way (P.Way) materials, laying and linking of tracks designed for a 32.5-tonne axle load, and other miscellaneous works across the Gomoh–Koderma and Gaya–Son Nagar sections of East Central Railway. The contract also covers the supply of various P.Way materials at Gaya.

The order has been awarded by East Central Railway’s Construction Organisation, headquartered in Patna, Bihar. The contract is domestic in nature and is to be executed within 365 days.

The company clarified that the promoter or promoter group has no interest in the entity awarding the contract and that the order does not fall under related-party transactions.

Ircon International: Share price, valuation and technical indicators

Despite rallying nearly 7% in Tuesday’s session Ircon International shares have remained under pressure over the longer term. The stock has declined around 38% in the past year. At current levels, the company commands a market capitalisation of approximately Rs 9,847 crore.

On the valuation front, Ircon International is trading at a price-to-earnings (P/E) ratio of 18.81 and a price-to-book (P/B) ratio of 1.48.

The September 2026 quarter shareholding data shows a marginal increase in institutional ownership. Foreign institutional investors (FIIs) raised their stake from 4.61% to 4.62%, while mutual fund holdings edged up from 0.29% to 0.31%.

However, the stock’s technical indicators remain weak. According to Trendlyne data, Ircon International is trading below seven of its eight simple moving averages (SMAs), indicating continued pressure on its price trend despite the latest rally.

Disclaimer: The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here

...moreless

...moreless