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Top rating lifts Ircon shares by 8%

Stocks
2 min Read Nov 25, 2024
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Ircon International shares rose 7.5% on Monday, reaching an intraday high of ₹201.6 per share on the BSE. This uptick followed Infomerics Valuation and Rating, assigning an ‘IVR AAA’ rating to the company’s ₹9,000 crore bank facilities. For investors looking to buy shares online, this development could signal growing confidence in Ircon’s financial health.

Shares continue the upward trend

At 10:49 AM, Ircon's shares were up 5.49%, trading at ₹197.8 per share on BSE. In comparison, the BSE Sensex rose by 1.55%, standing at 80,350.94. The company’s market capitalisation reached ₹18,579.89 crore. Ircon’s 52-week range spans from ₹157.5 to ₹351.65 per share, showcasing its potential for growth.

IVR AAA rating boosts investor confidence

The IVR AAA rating highlights the highest level of safety with minimal credit risk, ensuring timely financial obligation servicing. Industry analysts suggest that such ratings could attract more investors aiming to buy shares online. This rating is part of a regular assessment of the company’s financial stability.

Fine for non-compliance

Despite the positive rating, Ircon faced a penalty of ₹5,42,800 from BSE and NSE for non-compliance with governance norms. As of September 30, 2024, half of the company’s board was found to lack independent directors. Ircon clarified that as a government company under the Ministry of Railways (MoR), its board appointments are handled by the ministry, leaving Ircon with no direct control.

About Ircon International

Established in 1976, Ircon International is a public-sector undertaking under the Ministry of Railways. It specialises in constructing and developing transportation infrastructure, such as railways, highways, and airports. Known for quality and timely project delivery, Ircon also operates internationally and plays a significant role in global infrastructure development.

Stock performance 

Over the past year, Ircon’s shares have risen by 13%, compared to the Sensex’s 20% growth. For those looking to buy shares online, Ircon’s steady performance and positive rating offer promising prospects.

Key takeaways

  1. Ircon’s shares rose 7.5% after receiving an ‘IVR AAA’ rating.

  2. The stock traded at ₹197.8 per share at 10:49 AM, outperforming the broader market.

  3. The company clarified its position regarding non-compliance penalties.

  4. Investors may find potential in Ircon’s consistent growth and strong infrastructure portfolio.

Investors keen to buy shares online can consider Ircon, given its stability and reputation in infrastructure development.