Texmaco Rail Engineering, a prominent player in the railway industry, is witnessing a substantial surge in its shares, soaring by more than 14% and reaching a remarkable record high of Rs 149.40. This impressive feat occurs amidst a bullish trend within railway stocks. While there was a slight price softening due to profit-booking, the stock remains robust, presently trading at Rs 147.75. Notably, its stock movement is being closely monitored as part of the Additional Surveillance Measure framework.
Surging Shares Amid Bullish Trend
The driving force behind this bullish trend can be traced back to Texmaco Rail Engineering’s recent strategic collaboration with Aditya Birla Group’s Hindalco Industries. This collaboration is aimed at the production of aluminum rail wagons and coaches, a development that has significantly boosted share purchases. The company’s shares have been on an exceptional growth trajectory, experiencing a remarkable 252% surge in the current financial year 2023-24. This growth is further bolstered by the support of Indian Railways’ ‘Mission 3000 MT,’ which aims to double freight capacity to 3000 million tonnes by 2027, with an aspiration to achieve a 45% market share in the freight sector.
Strategic Collaboration Boosts Momentum
Texmaco Rail Engineering and its subsidiaries specialize in the manufacturing of rails and rail-related products. The company boasts expertise in track work, railway signaling, telecom, and metro track work. Financially, the company showcases substantial progress. In the first quarter of the current fiscal year 2023-24 (April-June 2023), it reported a net profit of Rs 14.57 crore, a notable turnaround compared to the net loss of Rs 22.53 crore during the same quarter in the previous year. Furthermore, the company’s total income surged more than twofold from Rs 298.70 crore to Rs 656.82 crore during this period.