Shares of this multibagger railway stock jumped around 5 percent in Friday’s trading session after the company bagged an order from the ‘Ministry of Railways’ worth Rs 1,374.41 crores for manufacturing and supplying wagons.
With a market capitalization of Rs 6,873.26 crores, the stocks of Texmaco Rail & Engineering Limited started their trading session on Friday at Rs 187.60 and currently trades at Rs 179.30, gaining around 5 percent compared to the previous closing levels of Rs 171.10 apiece. The scrip hit its 52-week high today at Rs 188.95.
Such bullish stock price behavior is witnessed today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated that it has secured an order from the ‘Ministry of Railways’ worth Rs 1,374.41 crores for manufacturing and supplying 3,400 ‘BOXNS’ wagons.
During the recent financial quarters, the company has been successful in increasing its prime indicators of business such as operating revenues and net profits.
The former took a shift from Rs 656.82 crores during Q1FY23-24 to Rs 805.05 crores during Q2FY23-24, and, the latter, during the same period, rose rapidly from Rs 8.54 crores to Rs 20.2 crores.
Year-to-date, the company’s stock has delivered multibagger returns of approximately 210 percent, viz, if someone had invested Rs 1 lakh into the company’s stock at the inception of this calendar year, it would have converted to Rs 3.10 lakhs.
As of September 2023, the company’s overall order book stands at Rs 7,800 crores, the majority of which is constituted by orders for freight cars, i.e., 64 percent, followed by other operating segments.
As a part of the National Rail Plan, there are expectations to increase the modal share of Indian Railways (IR) in freight from 26 percent to 45 percent by 2030.
Texmaco Rail & Engineering Limited is a multi-discipline and multi-unit infrastructure company with operating segments including Heavy Engineering Division and Rail EPC. The company manufactures diverse products comprising railway freight cars, hydro-mechanical equipment, steel castings, pressure vessels, etc.
Written by Amit Madnani
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.
