Shares of Ircon International jumped 3.6% to their day’s high of Rs 231.35 on the BSE after the company signed a Memorandum of Understanding (MoU) with Patel Engineering Limited.

The agreement aims to foster collaboration between the two companies in exploring, identifying, and jointly executing mutually beneficial business opportunities in various infrastructure projects, both in India and overseas.

Foreign institutional investors (FIIs) also pared their holdings, reducing their stake to 3.94% from 4.17% at the end of June. In contrast, retail investors increased their stake, now holding 25.56%, up from 23.41% in the previous quarter.

For Q1 FY25, Ircon International reported a 17% decline in consolidated revenue, with a topline of Rs 2,287.1 crore, compared to Rs 2,763.8 crore during the same period last year. Despite this revenue dip, the company’s net profit rose by 19.5% to Rs 224 crore, driven by lower expenses.

IRCON’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) remained flat year-on-year, declining by 2% to Rs 250.6 crore, while EBITDA margin expanded by nearly 200 basis points to 11% from 9.2% last year.

As per Trendlyne data, the average target price of Ircon International is Rs 242, which indicates an upside of 7% from the current market prices. The consensus recommendation from 3 analysts for the stock is a ‘Sell’.Its shares have surged 30% in 2024 to date and 432% over the past two years, with the company currently holding a market capitalization of Rs 21,250 crore.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)