Ircon International stock gains as PSU inks MoU with Patel Engineering for infra projects

IRCON is expected to report an around 10 percent dip in its revenue at Rs 2,595 crore with a net profit of Rs 204.6 crore in the upcoming quarterly results

Shares of Ircon International gained as the company has signed a Memorandum of Understanding (MoU) with Patel Engineering Limited for collaboration and co-operation with each other to explore, identify, pursue and jointly execute mutually beneficial business opportunities in various infrastructure projects in India and Overseas.

The stock will also be in focus as the latest shareholding pattern showed that mutual funds pared down their stake in the railway infra company during the September quarter. MF holdings in Ircon stood at 0.31 percent as of September 30, down from 1.67 percent at the end of the June quarter.

Quant Active Fund exited the stock during the July-September period. The MF house held a 1.15 percent stake in the company at the end of the June quarter.

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Foreign institutional investors also sold off IRCON shares in the September quarter. FII holding in the stock came down to 3.94 percent from 4.17 percent at the end of June. Meanwhile, retail investors raised their stake in the company as they now hold a 25.56 percent stake, up from the 23.41 percent reported at the end of June.

Shares of Ircon International closed half a percent higher at Rs 223 on the National Stock Exchange (NSE) in the previous session. The stock has risen around 27 percent so far this year, outperforming Nifty's returns of 14.8 percent.

In the last one year, the counter has risen around 39 percent compared to Nifty's gain of 26 percent during this period.

IRCON is expected to report an around 10 percent dip in its revenue at Rs 2,595 crore with a net profit of Rs 204.6 crore in the upcoming quarterly results, said Antique Broking in its preview report.

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