Texmaco Rail & Engineering Ltd is garnering attention in the stock market as the railway firm’s Board of Directors greenlights a plan to raise up to Rs 150 crore through a preferential issue of convertible warrants to its promoters and promoter groups. The move signals Texmaco Rail’s strategic approach to fueling expansion initiatives and capitalizing on its robust financial standing.
Key Highlights:
- Texmaco Rail & Engineering shares closed 1.22% lower at Rs 194.90 on BSE in the previous session.
- The Board’s approval paves the way for raising funds through a preferential issue of convertible warrants, offering a glimpse into Texmaco Rail’s growth trajectory.
- Texmaco Rail’s market capitalization stands at Rs 7,471 crore, and the recent move aims to further fortify its financial position.
Stock Performance and Technical Analysis:
- The stock has witnessed a 52-week low of Rs 40.49 on March 29, 2023, and a 52-week high of Rs 231.90 on February 2, 2024, on BSE.
- Texmaco Rail shares exhibit low volatility with a beta of 0.4, indicating stability over the past year.
- Technical indicators, such as the relative strength index (RSI), position the stock at 51.7, suggesting a balanced trading position without extreme overbought or oversold conditions.
Financial Overview:
- In Q3, Texmaco Rail reported a significant 43.46% rise in net sales, reaching Rs 896.44 crore.
- Net profit witnessed an impressive 160% YoY surge, reaching Rs 29.37 crore in the December quarter.
- EBITDA climbed 52% to Rs 95.03 crore, showcasing the company’s operational strength and financial resilience.
Outlook and Future Projections:
- Texmaco Rail’s earnings per share (EPS) increased to Rs. 0.89.
- The company aims to deliver 3,400 rail wagon orders in Q1FY25, riding on a healthy future order book position.
About Texmaco Rail & Engineering: Texmaco Rail & Engineering is a leading manufacturer with a diverse product range, including railway freight cars, hydro-mechanical equipment, industrial structurals, loco components, loco shells, steel girders for railway bridges, steel castings, and pressure vessels. The company is actively involved in engineering, procurement, construction (EPC) contracts for various railway projects, emphasizing a turnkey approach.
