Texmaco Rail Share Price Jumps 11% to Record High: More Gains Ahead?

On June 27, shares of Texmaco Rail & Engineering surged by over 11%, reaching a new record high of ₹245.65 on the National Stock Exchange (NSE). This sharp rally is driven by investor expectations that the company will benefit from the expanding Indian economy and the rising investments in the railway sector leading to substantial trading volume in recent weeks, contributing to its rise to new highs.

Texmaco Rail & Engineering Ltd., based in Kolkata, is a private engineering and infrastructure company. The company mainly focuses on manufacturing railway wagons, coaches, and locomotives, in addition to offering related services.

"It has formed a rounding base and experienced a breakout around the ₹220-215 zone," stated Osho Krishan, Senior Research Analyst in Technical & Derivatives at Angel One. "It seems that the stock is poised to maintain its upward momentum, with initial support at the breakout range of ₹220-215, followed by the bullish gap at ₹200-196 levels," he added.

Texmaco Rail & Engineering reported a significant increase in its consolidated net profit for the quarter ended March 2024 (Q4FY24). The company's net profit soared by 247% to ₹45.32 crore, a notable rise from ₹18.33 crore in Q4FY23.

The engineering giant also saw a substantial 37.03% increase in its revenue from operations, which surged to ₹1,144.56 crore in the fourth quarter of FY24. Annually, the company's performance was equally impressive, with consolidated net profit for FY24 skyrocketing to ₹113.21 crore, up from just ₹26.03 crore in FY23.

Additionally, the revenue from operations for FY24 saw a significant increase of 56.15%, reaching ₹3,502.87 crore compared to the previous fiscal year. Over the past year, Texmaco Rail's stock has surged by more than 200%, quadrupling investors' money. In contrast, the benchmark Nifty gained over 27% during the same period. So far in 2024, the stock has rallied 38%.