Texmaco Rail shares surge 6% on bagging ₹1,374 cr order from railway ministry

Shares of Texmaco Rail and Engineering Ltd surged as much as 6.1% to hit an intraday high of ₹173.45 apiece on the BSE on Thursday, a day after the company bagged an order worth ₹1,314 crore from the ministry of railways to supply 3,400 BOXNS wagons.

The share price of the company, which is part of the K. K. Birla group and currently part of the Adventz group of Kolkata, opened higher at ₹164.05, up 0.36% as against the previous closing price of ₹163.45. At 10:59 am, the share price of the company was trading 3.40% higher at ₹169. In contrast to this, the broader BSE Sensex was trading 13.01 points or 0.02% lower at 70,493.30. The company’s market capitalisation in early trade stood at ₹6,478.42 crore with more than 5.70 lakh shares exchanging hands on the BSE, as against the two-week average of 6.53 lakh shares.

At present, the share price of the company is trading 10.6% lower than the 52-week high of ₹188.95, which the company touched on December 15 this year. The company hit a 52-week low of ₹40.49 on March 29 this year.

In the last one month, three months and a year, the counter has given 13.54%, 29.75% and 204.50% in returns, respectively.

"We write to inform you that the Ministry of Railways (Railway Board) vide its Letter of Acceptance no. No.2023/RS(I)/954/7 TC has awarded an order to the Company for the manufacture and supply of 3,400 BOXNS wagons (out of which 1st tranche of 1133 wagons to be executed by 31st December 2024, 2nd tranche of 1133 wagons to be executed by 30th June, 2025 & 3rd tranche of 1134 wagons to be executed by 31st December, 2025 valuing Rs. 1374.41," the company says in a regulatory filing dated on December 20.

Last month, the company raised ₹750 crore through qualified institutional placement (QIP) of equity shares. The company, which is engaged in the manufacturing of railway freight cars, wagons, and electric multiple-unit coaches, aims to use the amount for financing capital expenditures, repaying loans, meeting working capital requirements and general corporate purposes. In October this year, the company’s joint venture with SS Fabricators and Manufacturers received an order worth ₹179.89 crore from SJVN Arun-3 Power Development Company Limited for building a 900 MW (megawatt) run-of-the-river hydropower project in Nepal.

In the July to September quarter of FY24, the company’s consolidated net profit witnessed a surge of 66% to ₹24.64 crore as against ₹15.43 crore in the same period last year. The company’s revenue from operations stood at ₹805 crore, witnessing a growth of 66.32% as against ₹484 crore in the same period last year.

Notably, the company is reportedly aiming to expand its order book to 20,000 wagons in the future. 

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