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Shares of Texmaco Rail & Engineering hit a fresh 52-week high of Rs 108.50 as they rallied nearly 14 per cent on the BSE in Thursday's intra-day trade amid heavy volumes, in an otherwise weak market.
At 01:48 PM, the stock was quoting 12 per cent higher at Rs 107.23 on the back of nearly three-fold jump in its average trading volumes. A combined 22.7 million equity shares, representing 7 per cent of total equity of Texmaco Rail, have so far changed hands on the NSE and BSE. In comparison, the S&P BSE Sensex was down 0.50 per cent at 66,371.
In the past two months, the stock price of the company has doubled from a level of Rs 54.20 hit on May 25.
Texmaco Rail and its subsidiaries are engaged in the manufacturing, selling and providing service for rail and rail-related products. The company manufactures a diverse range of products.
As the Government of India continues its focus on investments in rail infrastructure, with the objective of reducing the logistics cost, in line with the global benchmarks, analysts believe with this long term objective, the Railways Industry (comprising of rolling stock, EPC and allied services) will continue to see investments growing year on year.
The Centre has also undertaken targets to reduce carbon footprint, which will result in more freight on rails and also increase in urban mobility through metro, light metro etc. Also, Indian Railways' determined approach on building new Dedicated Freight Corridors (DFCs) will provide added business opportunity for growth and development of the business of the company.
The Government's focused approach on completion of freight corridor and upgrading the rail infrastructure is a positive catalyst for the Rail EPC division of the company.
During FY23, the company bagged an order for 20,067 wagons valuing approx. Rs 6,450 crore (to be executed over a period of thirty-nine months). This is the largest-ever single wagon order released by the Indian Railways to the company.
"The prototype wagon got approved at the end of July, and the series production started from August/September onwards. On an average, the Freight Car Division is currently producing 450/500 wagons per month. The division is further geared up to ramp up production in the coming quarters," the company said.
The division is also expecting to receive an additional order for 300 wagons valuing approx. $23 million to be exported. The execution of this order is expected to start from Q3 of the current financial year.
That apart, Wabtec Texmaco joint venture expects to receive sizeable orders both from Zonal Railway Workshops and Wagon manufacturers for its products specially Draft Gears and Friction Wedges apart from meeting demand for meeting its export obligations. The JV is enhancing its capacity and capability to cater to this enhanced demand.
