Texmaco Rail & Engineering, a private player engaged in the manufacturing of railway wagons, coaches, and locomotives, has witnessed strong rally in the calendar year 2023, thanks to healthy order book position, stable outlook for domestic railway wagon industry, and the government’s strong impetus on railway infrastructure development. The recent fundraise of ₹750 crore by the Kolkata-based company to fund capital expenditures and repay loans also augured well for the stock.
Shares of Texmaco Rail, a part of K. K. Birla group and currently part of the Adventz group of Kolkata, touched multiple highs this year. The smallcap stock started the year on a muted note and slipped to its 52-week low of ₹40.49 on March 29, in sync with the correction in the broader market. However, the railway stock staged a strong comeback and touched ₹100 mark by the end of July, while it touched a new high of ₹159.65 on September 11. Breaching its previous high, Texmaco Rail touched new record highs this month amid fresh orders and robust second quarter results.
Texmaco Rail shares have zoomed more than 370% in nearly nine months, from its 52-week low of ₹40.49 on March 29, to a fresh all-time high of ₹188.95 in intraday today. In the calendar year 2023, the stock rallied 210%, while it surged 220% in the past 12 months. The counter jumped 170% in six months, and 31% in a month.
On Friday, the stock opened higher for the fourth straight session at ₹187.60, up 9.6% against the previous closing price of ₹171.10 on the BSE. In the first hour of trade so far, the counter gained as much as 10.4% to hit a new record high of 188.95, while the market capitalisation rose to ₹6,900 crore.
Texmaco Rail share price got a lift today after the company received an order worth ₹1,374 crore from railway ministry for manufacturing and supply of 3,400 BOXNS wagons.
“The Ministry of Railways (Railway Board) vide its Letter of Acceptance no. No.2023/RS(l)/954/7 TC has awarded an order to the company for manufacture and supply of 3,400 BOXNS wagons valuing ₹1,374.41 crores approx,” it said in a BSE filing on Thursday evening.
Last month, the company raised ₹750 crore through a qualified institutional placement (QIP) of equity shares, which received good response from foreign as well as domestic institutional investors & funds. The engineering and infrastructure company intends to use the fund for various purposes, such as financing capital expenditures, repaying loans, meeting working capital requirements, and general corporate purposes.
On the financial front, Texmaco Rail reported a 66% jump in consolidated net profit to ₹24.64 crore in the second quarter ended September 30, 2023, as compared to ₹15.43 crore in the same period last year. The revenue from operations surged 66.32% to ₹805 crore as against ₹484 crore in the year-ago-period. The EBITDA grew 76.74% YoY to ₹76 crore, while margin was steady on a YoY basis at 9%.
Texmaco is engaged in the manufacturing of railway freight cars, wagons, electric multiple unit coaches, locomotive components and assemblies, hydromechanical equipment, industrial structural and steel castings. The company is also involved in the execution of railway and metro rail projects, covering segments such as track laying, electrification, signalling, telecommunication and auto fare collection system.
In Q2 FY24, the heavy engineering division was the best performer, with the gross revenue from this division rising over three-fold to ₹616 crore from ₹192 crore in Q2FY23. While revenue from the steel foundry was at ₹202 crore versus ₹123 crore in the previous year, rail and green energy (Infra) and electrical (Infra) posted revenues of ₹123 crore and ₹32.23 crore, respectively.
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