Indian Railways government company IRCON International Limited has received not one, not two, but three big orders. Their total price is more than Rs 1,600 crore. IRCON International Limited said in a regulatory filing that it received the first order from the Government Railway Company Rail Development Corporation Limited (RVNL), which is priced at Rs 529 crore.
The company has received the second and third order from the Metropolitan Region Development Authority (MMRDA). Their price is Rs 471 crore and Rs 642 crore. This news has come up at a time when IRCON’s stock has fallen by 40 percent for the last one year. In such a situation, it is believed that this PSU share can create a stir in the stock market on Monday and can prove to be a lifeline for investors.
529 crore project for Indore-Budni section
According to the first order from RVNL, IRCON will construct a new railway line in Madhya Pradesh. Under this project, the company has to lay a railway line between the Indore-Budni section. The project is Rs 755,78,21,993 (Rs 755 crore), of which IRCON holds 70 percent i.e. about Rs 529 crore. The company has to complete this project in 36 months.
MMRDA placed a big order of ₹ 1113 crore
IRCON has received the second and third order from the Mumbai Metropolitan Area Development Authority. The first order is for Line-6 of Mumbai Metro, which will connect Swami Samarth Nagar to Bikhrooli. Under this project, the company will have to complete the work such as power supply, traction, lift and escalator. The cost of this order is Rs 642,44,02,451 (Rs 642 crore).
In addition, the company has received another order from MMRDA for Line-5 of Mumbai Metro. Under this, the company will also have to do the work of laying cables in addition to making sub-stations. Also, other electrical and mechanical functions will have to be done at stations. The total cost of this order is Rs 471,29,72,820 (Rs 471 crore).
How is the performance of PSU stock?
The stock opened at Rs 189.99 during the trading session on Friday and closed at Rs 186.74. The shares recorded a decline of 1.60 percent. PSU stock has fallen by 40% in the last one year and is 43% below its 52-week high. However, the company has given a return of 306 percent in five years. In July 2020, the company’s stock was trading around Rs 46, which is now trading around Rs 186. The stock has so far given a total return of up to 350 percent.
