Texmaco Rail’s stock is on the rise, with analysts at Nuvama confident it could see a 35% increase, even though the company reported a 22% drop in revenue from operations in the first quarter of FY25, bringing in ₹891.71 crore. The company’s consolidated net profit also fell by nearly 30% quarter-on-quarter, down to ₹29.25 crore.
However, Nuvama’s positive outlook comes from the fact that Texmaco’s revenue grew by 36% year-on-year, despite challenges like elections and heatwaves slowing down project execution. The company also saw a 176% increase in profit after tax (PAT) year-on-year, even though there were losses from old contracts in the rail-EPC segment.
Analysts are optimistic due to the government’s increased targets for rolling stock procurement, which benefits Texmaco. The company closed the first quarter with a strong order book worth ₹7,460 crore, with wagons making up 60% of this total. Private wagon orders account for 12% of the wagon order book.
Over the past year, Texmaco Rail’s stock has skyrocketed by nearly 110%, significantly outpacing the Nifty index’s 25% growth. Since the beginning of this year alone, the stock has risen by 43%, compared to the Nifty’s 11% gain in the same period.
Disclaimer: The views and investment tips expressed by investment experts on Sharepriceindia.com are their own and not those of the website or its management. Sharepriceindia.com advises users to check with certified experts before taking any investment decisions.
