Railway Stock At New 52-Week High On Huge Deal; Turns Rs 60,000 Into Rs 1.93 Lakh Corpus In 12 Months

One of the leading railway stocks, Texmaco Rail Engineering has been rising to hit back-to-back new 52-week highs on the backdrop of huge deal wins and also eyeing a strong pipeline. Friday was yet another bulls bandwagon for Texmaco which is also a dividend-rewarding stock.

On December 15, Texmaco's share price ended at Rs 176 apiece, up by 2.9% on BSE with a market cap of Rs 6,746.75 crore. In the trading hours of this day, Texmaco hit a new 52-week high of Rs 188.95 apiece.

On the previous day, Texmaco gained by over 6.3% to end at Rs 171.10 apiece.

It also needs to be noted that Texmaco shares have been on a winning streak for the fourth consecutive day. After a dull December 11th, Texmaco picked up momentum and rallied by nearly 15% by the end of the trading week.

Year-to-date, Texmaco shares have emerged as multi-bagger with gains of nearly 205% on BSE. But in 12 months, the stock has skyrocketed by 220.88%. Let's suppose someone invested Rs 60,000 lumpsum in Texmaco shares a year ago, then their funds have risen to a massive Rs 1,92,525 as of now.

Texmaco also paid about 15% dividend amounting to Rs 0.15 per share in 2023 so far. Currently, its dividend yield is at 0.09%.

The reason behind strong bulls in Texmaco shares is because of its deal wins.

On December 14th, Texmaco said that it had been awarded an order for manufacturing and supplying 3,400 BOXNS wagons. This transaction is worth Rs 1,374.41 crore.

Also, while speaking to CNBC-TV18 earlier on Friday, the company's Executive Director and Vice-President Indrajit Mookerjee said that they are expecting more private orders and another government order of 20,000 wagons in the future. Further, Mookerjee revealed that the latest orders are likely to be delivered from mid-2024 and its completion is seen by December 2025-end.

Last month, Texmaco allotted 5,80,90,000 equity shares having a face value of Re 1 each at a share price of Rs 129.11 apiece to eligible qualified institutional buyers. The total amount of securities issued under its qualified institutions placement (QIPs) were worth Rs 750 crore.

TEXMACO has been the leading and most reliable freight car manufacturer over the past 8 (eight) decades. Its Freight Cars serve a host of core industries like Cement, Steel, Defence, Fertilizer, Oil, Alumina, Thermal Power Projects, Chemical Plants, etc.

The company's first half of FY24 has been robust.

In the first six months of FY24, Texmaco's revenue from operations on a consolidated basis stood at Rs 1,461.86 crore, nearly doubling from Rs 783.11 crore in H1FY23. Also, Texmaco posted net profit of Rs 37.40 crore in H1FY24 versus net loss of Rs 5.10 crore in the same period a year ago.

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