The shares of the rail solution provider gained up to 4 percent after the company came into a share purchase agreement with Saira Asia Interior Pvt Ltd worth Rs 9 crore.
With a market capitalization of Rs 7,000.66 crore, the shares of Texmaco Rail & Engineering Ltd. were trading at Rs 175.25 per share, increasing around 2.01 percent as compared to the previous closing price of Rs 171.80 apiece.
On Wednesday, the stock showed a decent upside after Texmaco Rail & Engineering Ltd entered into a share purchase agreement with Saira Asia Interior Pvt Ltd to acquire 51 percent of the company. This acquisition is valued at Rs 9 crore.
Moreover, this acquisition will make the comprehensive mechanical partner in the commuter mobility segment and will provide a competitive advantage by offering comprehensive solutions that address the evolving demand of the railway sector. This acquisition will be executed within 90 days.
Furthermore, Saira Asia specializes in creating cutting-edge metro interiors that elevate public transit standards via precision engineering and imaginative design. Saira Asia is quickly increasing its footprint in urban interior goods.
Looking forward to the company’s financial performance, revenue climbed by 37 percent from Rs 835 crore in Q4FY23 to Rs 1,145 crore in Q4FY24, and during the same time frame, net profit increased impressively by 161 percent from Rs 18 crore to Rs 47 crore.
As of December 2023, the company has an impenetrable order book of Rs 57 billion in which 18 percent of orders are received from the private sector and the other 82 percent comes from Indian Railways. The company won its largest-ever order of more than 20,000 freight from Indian railways.
The company has seen 3-5x growth in the export of components and railway castings; is a Qualified supplier to foreign players; also benefitting from the geopolitical shift in supply chains.
Texmaco Rail & Engineering Limited manufactures a wide range of products, including railway freight cars, hydro-mechanical equipment and industrial structural components, loco components and loco shells, steel girders for railway bridges, steel castings, and pressure vessels.
Written by:- Abhishek Singh
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