Rs 7,800 crore order book & FIIs bought 1,82,15,022 shares: This multibagger railway wagons company bags new order worth Rs 1,374.41 crore from Ministry of Railways!

The stock gave multibagger returns of 170 per cent in just 6 months, 225 per cent in 1 year and a whopping 520 per cent in 3 years.

Texmaco Rail & Engineering Ltd informed that the company has received an order for the manufacture and supply of 3,400 BOXNS wagons valuing Rs 1,374.41 crore approx. from the Ministry of Railways.

Recently, the company issued 58,09,00,000 equity shares for Rs 75,000 lakhs to qualified institutional buyers at a discounted price of Rs 129.11 per share (including a premium) in a placement. In the QIP, SOCIETE GENERALE – ODI was allocated 84,42,356 shares or 14.53 per cent; ABU DHABI INVESTMENT AUTHORITY – MONSOON was allocated 59,00,000 shares or 10.16 per cent and BOFA SECURITIES EUROPE SA – ODI was allocated 38,72,666 shares or 6.67 per cent (allottees who have been allotted more than 5 per cent of the equity shares).

Order Book Update: As of September 2023, the company’s order book stands at Rs 7,800 crore. The Budgetary outlay for railways in Union budget 24 was Rs 2.4 lakh crore. The company has won its largest-ever order of 20,000+ freight cars from Indian Railways wherein its execution is underway.

Quarterly Results: In the second quarter of fiscal year 2024, the company's net sales increased by 66.19 per cent to Rs 805.05 crore, operating profit increased by 52.29 per cent to Rs 81.61 crore, and net profit increased by 70 per cent to Rs 20.20 crore, compared to the second quarter of fiscal year 2023.

Half-yearly Results: After a net loss of Rs 12.47 crore in H1FY23, the company reported a turnaround story in H1FY24, with net sales increasing by 86.67 per cent to Rs 1,461.87 crore and operating profit increasing by 187.33 per cent to Rs 138.49 crore, resulting in a net profit of Rs 28.74 crore.

For the financial year 2023, the company reported a 38.28 per cent increase in net sales to Rs 2,243 crore and an 11.11 per cent increase in net profit to Rs 20 crore, compared to the financial year 2022. The company has also been maintaining a healthy dividend payout of 21 per cent.

Today, shares of Texmaco Rail & Engineering Ltd gained 0.91 per cent to Rs 177.60 per share from its previous closing of Rs 176 per share with an intraday high of Rs 181.05 and an intraday low of Rs 174.90. The company has a market cap of over Rs 6,800 crore.  

Texmaco Rail & Engineering Ltd is an engineering infrastructure company & part of the Adventz Group. The company is involved in the business of manufacturing rolling stock, hydro-mechanical equipment, steel castings & construction of Rail EPC, bridges, and other steel structures.

The stock gave multibagger returns of 170 per cent in just 6 months, 225 per cent in 1 year and a whopping 520 per cent in 3 years. Investors should keep an eye on this railway wagon stock.

Disclaimer: The article is for informational purposes only and not investment advice.