This Engineering stock has risen 6% and made a new 52W high after reporting outstanding Q1 FY24 results and announcement of promoters releasing their share pledges all the way down to 0%. The trend is supported by increasing volumes over time periods – today 1 cr+ vs monthly and weekly averages of ~87 cr and ~78 cr respectively.
The company has a market cap of Rs ~3,690 crore and P/E in line with industry average. The company has relatively low volatility with a beta of 1.10.
The multibagger in question is Texmaco Rail & Engineering Ltd (”Texmaco”). Texmaco has 20% UC set at Rs. 129.35 which it is rapidly approaching. The stock has returned 162.8% in a 1 year period and 382.6% over the last 3 year period. Meaning, if you invested Rs. 1 lakh in Texmaco a year ago, the long position would now be worth Rs. 2.63 lakh!
Texmaco reported Q1 earnings – Revenue grew 120% YoY from Rs. 298.7 crore to Rs. 656.8 crore, Net Income grew 162% YoY from Rs. 12.6 crore to Rs. 20.5 crore and EBITDA grew 1157.4% YoY from Rs. 5.4 crore to Rs. 56.9 crore. EPS expanded from 0.40 in Q1 ‘23 to 0.57 Q1 ‘24.
The company has a stable shareholding – Promoters 58.7%, FIIs & DIIs – 8.9% and the rest are public float. There were no recent selloffs from institutions or insiders – most recent block deal was on 27th July – Graviton Research Capital bought 2,922,734 shares and HRTI Pvt Ltd bought 1,901,125 shares and 6 orders for more than 100,000 shares today.
Texmaco Rail & Engineering Limited operates as an engineering and infrastructure company in India. It operates through three segments: Heavy Engineering, Steel Foundry, and Rail EPC. It also exports its products. The company was incorporated in 1998 and is based in Kolkata, India.
Written by Sandeep R
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