IRCON International Ltd.
ISIN: INE962Y01021 • Market Cap: ₹11,531 Cr
The 5-Pillar Quality Audit for IRCON International Ltd.
Evaluated across Profitability, Financial Health, Historical Compounding, Valuation Safety, and Ownership Governance:
1. Profitability & Capital Efficiency
Weight: 25%Measures operating margins (8.3%), Return on Capital Employed (9.4%), and equity compounding (11.5%).
2. Financial Health & Solvency
Weight: 25%Debt-to-Equity is 0.67 with comfortable interest coverage and clean working capital.
3. Growth & Compounding Track Record
Weight: 20%Historical 3Y Sales CAGR (-3.8%) and 3Y PAT CAGR (-15.1%).
4. Valuation Multiple & Margin of Safety
Weight: 15%Trades at P/E of 22.02 vs PEG of 4.79 and Dividend Yield of 1.6%.
5. Ownership Quality & Governance
Weight: 15%Promoter holding stands at 65.2%, backed by 6.7% institutional ownership.
Key Fundamental Strengths
Consistent Market Standing (Mid Cap)
Established player in the Construction sector with an overall fundamental quality score of 51/100.
Areas to Watch & Potential Risks
Subdued Capital Efficiency (ROCE: 9.4%)
A sub-12% ROCE suggests return on capital barely exceeds the company's weighted average cost of capital (WACC).
Topline Stagnation (3Y Sales CAGR: -3.8%)
Revenue growth has slowed below inflation rates, indicating cyclical demand slowdown or saturated core markets.
Quantitative Strategy Eligibility
Checking IRCON against established Indian wealth creation frameworks:
Coffee Can Investing Framework
Fails 10%+ revenue growth or 15%+ minimum capital return benchmark over historical periods.
Quality Factor Screener (High RoIC + Low Debt)
Scorecard of 51/100 or leverage profile sits below strict quality index hurdles.
GARP / Value-Growth Blend
Valuation multiple or return metrics require further cyclical pullback.
Construction Sector Peer Comparison
Compare IRCON directly against top industry peers by market capitalization:
| Company | 5-Pillar Score | Market Cap | P/E | ROCE | D/E | Scorecard |
|---|---|---|---|---|---|---|
| IRCON International Ltd. (IRCON)Current | 51/100 | ₹11,531 Cr | 22.02 | 9.4% | 0.67 | — |
| Larsen & Toubro Ltd. (LT) | 69/100 | ₹5.54 Lakh Cr | 33.42 | 17.9% | 1.12 | View |
| Rail Vikas Nigam Ltd. (RVNL) | 48/100 | ₹46,517 Cr | 51.71 | 10.3% | 0.49 | View |
| NBCC (India) Ltd. (NBCC) | 79/100 | ₹23,571 Cr | 31.74 | 38.8% | 0.00 | View |
| Kalpataru Projects International Ltd. (KPIL) | 76/100 | ₹23,516 Cr | 20.69 | 22.9% | 0.43 | View |
| IRB Infrastructure Developers Ltd. (IRB) | 70/100 | ₹22,912 Cr | 24.01 | 6.0% | 0.96 | View |
Frequently Asked Questions: IRCON International Ltd.
Q:What is the 5-Pillar Fundamental Score for IRCON International Ltd. (IRCON)?
IRCON International Ltd. has a RupeeTools Fundamental Score of 51/100, placing it in the 'Moderate / Average' category. Its pillar scores are: Profitability (50/100), Financial Health (60/100), Growth (18/100), Valuation (60/100), and Ownership Quality (72/100).
Q:Is IRCON fundamentally strong for long-term investment?
IRCON currently holds a moderate quality rating of 51/100. While it operates in the Construction sector, investors should monitor its profit margins before initiating long-term positions.
Q:Does IRCON pass the Coffee Can Investing filter?
No. IRCON does not currently meet the strict 15% ROCE and 10% sustained topline compounding threshold mandated by the Coffee Can investing framework.
Q:How does IRCON compare against other Construction peers?
Within India's Construction sector, IRCON trades at a P/E of 22.02 and generates an ROCE of 9.4%. Compare its 5-Pillar score of 51/100 against top sector peers like Larsen & Toubro Ltd. (69/100), Rail Vikas Nigam Ltd. (48/100).
Regulatory & SEBI Research Analyst Compliance Disclaimer:
This 5-pillar fundamental score is an automated quantitative health check generated purely from historical public financial statements, corporate filings, and exchange disclosures for educational and informational purposes only. It does NOT constitute investment advice, a stock recommendation, or a solicitation to buy or sell securities. RupeeTools is not a SEBI-registered Research Analyst. Please consult a SEBI-registered financial advisor before making investment decisions.