Texmaco Rail Engineering, a prominent player in the railway industry, is witnessing robust investor interest as its shares surge by over 14%, achieving a record high of Rs 149.40 in intra-day trading. Despite a slight price correction due to profit-booking, the stock remains resilient, currently trading at Rs 147.75. This surge is monitored under the Additional Surveillance Measure framework.
Strong Surge in Texmaco Rail Engineering Shares
The bullish trend can be attributed to the company’s recent strategic collaboration with Aditya Birla Group’s Hindalco Industries, focusing on the production of aluminum rail wagons and coaches. This development has significantly bolstered share purchases. Texmaco Rail’s shares have exhibited exceptional growth, registering a remarkable 252% increase in the financial year 2023-24. The company’s fortunes are also bolstered by Indian Railways’ ‘Mission 3000 MT,’ aiming to double freight capacity to 3000 million tonnes by 2027.
Resilience Amidst Correction
Texmaco Rail Engineering, along with its subsidiaries, specializes in manufacturing rails and rail-related products. The company’s expertise extends to track work, railway signaling, telecom, and metro track work. Financially, the company has showcased remarkable 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 stark improvement compared to the net loss of Rs 22.53 crore during the same quarter the previous year. The company’s total income more than doubled from Rs 298.70 crore to Rs 656.82 crore during this period.
