The railway sector is a crucial component of global transport, handling 9 trillion passenger kilometers and 10 trillion ton-kilometers of freight annually. With over 1.3 million kilometers of track, it serves billions of passengers and freight customers, contributing significantly to economic growth and sustainability efforts worldwide.
With a market capitalization of Rs 10,877.49 crore, the shares of Texmaco Rail & Engineering Ltd were trading in at Rs 272.10 per share, decreasing around 1 percent as compared to the previous closing price of Rs 274.65 apiece.
Matter explanation:-
Nuvama, one of the well-known brokerages in India, gave a ‘Buy’ call on the railway stock with a target price of Rs 331 apiece, indicating a potential upside of 21 percent from Thursday’s price of Rs 272.10 per share.
Brokerage Findings:-
As per the brokerage, Texmaco Rail is experiencing a remarkable recovery after the company faced a downturn over FY23-24, however, the wagon business has ramped back to form with order accumulation over FY23–24 being around 75 percent higher than that over FY14–22.
Furthermore, Texmaco Rail has magnified its capacity and anticipates reaching production of 1,000 wagons/month soon. Moreover, Texmaco’s wagon, rail EPC and OHE operations benefit from Indian Railways’ growth and metro projects. Nuvama’s study stated that partnerships with global firms increase its rail component offers, assuring full railway services.
Financial performance:-
Looking into the company’s financial performance, revenue increased by 37 percent from Rs 835 crore in Q4FY23 to Rs 1,145 crore in Q4FY24. During the same period, net profit increased by 161 percent, from Rs 18 crore to Rs 47 crore.
Remarkable return:-
The stock has given a return of 49.48 percent in just six months and a multi-bagger of 228.08 percent in a year. A shareholder’s investment of Rs. 1 lakh in the firm is worth Rs. 2.28 lakh in a Year.
Company profile:-
Texmaco Rail & Engineering Limited is an India-based company that produces a variety of products, including railway freight cars, hydro-mechanical equipment, industrial structures, loco components, shells, steel girders for railway bridges, steel castings, and pressure vessels.
Written by:- Abhishek Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
