Multibagger Railway Company Acquires Jindal Rail Infrastructure to Expand Market Presence and Enhance Wagon Capabilities; Stock Gains Over 550 per cent in Just 2 Years!
The company’s shares have delivered an impressive return of over 180 per cent to its shareholders in just 1 year.
Texmaco Rail & Engineering Limited (Texmaco) a leading manufacturer of freight wagons and provider of railway infrastructure in India, has announced that it has entered into definitive agreements with Jindal Rail & Infrastructure Limited (“JRIL”), JITF Urban Infrastructure Services Limited, and Siddeshwari Tradex Private Limited for the acquisition of 100 percent of the share capital of JRIL on a fully diluted basis. The transaction is subject to certain adjustments at closing, as specified in the definitive agreements.
Texmaco’s acquisition of JRIL is valued at Rs. 615 Crores in cash, subject to certain adjustments at closing. The Enterprise Value of JRIL stands at Rs. 687 Crores, representing an acquisition FY 2024 EV/EBITDA multiple of 8.1x. Although the definitive agreements have been executed, the transaction remains contingent upon meeting specific conditions precedent, which are anticipated to be fulfilled within 45 days.
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Target Entity Details:
Jindal Rail Infrastructure Limited (JRIL) operates in the manufacturing industry with a focus on rail wagons. The company, which was incorporated on May 25, 2007, has shown significant growth in its turnover over recent years. For the fiscal year 2023-24, JRIL reported a turnover of Rs. 748.37 Crores, up from Rs. 355.57 Crores in FY 2022-23 and Rs. 256.71 Crores in FY 2021-22. JRIL specializes in the production of rail wagons and provides engineering, designing, and project execution services related to these products.
Objectives of Acquisition:
The acquisition is aimed at achieving several strategic goals for Texmaco:
- Leadership in Freight Rolling Stock: The move is designed to bolster Texmaco's leadership in the special-purpose private freight rolling stock market, both domestically and internationally.
- New Product Lines: This will open opportunities for expanding product lines, including other rolling stocks.
- Enhanced Presence in Western India: The acquisition will strengthen Texmaco’s presence in Western India and provide unique opportunities for increased exports.
This acquisition represents a strategic expansion for Texmaco Rail & Engineering Limited, positioning the company to leverage new market opportunities and enhance its capabilities in the rail sector.
Today the shares of Texmaco Rail & Engineering Limited closed the day at Rs 276.20. the current market capitalization of the company stands at Rs 11,033.29 crores. Additionally, the shares have delivered a multibagger return of over 180 per cent in the past 1 year.
Investors must keep this Small-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.
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