Texmaco Rail shares rise 14%, hit 52-week high; time to buy, sell or hold?

Shares of Texmaco Rail & Engineering Ltd gained 14% to a fresh 52 week high in early deals today. The railway stock zoomed 14% to a yearly high of Rs 149.40 on BSE today. Total 5.18 lakh shares of the firm changed hands amounting to a turnover of Rs 7.48 crore. Market cap of the firm rose to Rs 4705 crore.   The stock hit a 52 week low of Rs 40.49 on March 29, 2023. Since then, the stock has recovered 269% from its yearly low.    

In terms of technicals, the relative strength index (RSI) of the stock stands at 80.4, signaling it's trading in the overbought zone. Texmaco Rail shares have a beta of 1.2, indicating very high volatility in a year. Texmaco Rail shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.       

In the last one year, the Texmaco Rail stock has surged 187%.  

23 promoters held 58.70 per cent stake in the firm and 1,18,051 public shareholders owned 41.30 per cent or 13.29 crore shares at the end of June 2023 quarter. Of these, 1.13 lakh resident individuals held 7.06 crore shares or 21.96% stake with capital up to Rs 2 lakh. Only 19 resident individuals with 2.56% stake held capital above Rs 2 lakh at the end of Q1.  

 Here’s a look at what analysts said on the outlook of the stock.  

Abhijeet from Tips2trades said, “Texmaco Rail is bullish but also overbought on the daily charts with next resistances at Rs 135 & Rs 142 respectively. Investors should book profits at current levels as a daily close below support of Rs125 could lead to target of Rs 109.7 in the near term."  

Vaibhav Kaushik, Research Analyst, GCL Broking said " Texmaco Rail is trading at 52 high. Now, it is ready to cross its all time high also which is near Rs 160 mark. The stock has given a strong breakout above 70 levels in June month. After that, it is in a strong upward movement. It has strong support at Rs 114.  So every dip is a buying opportunity with first support of Rs 114 and a target of Rs 160." 

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, “The stock has witnessed a decent rally in the last 3-4 months with recently indicating a breakout above the previous major peak zone of Rs 116 levels and has the next target of Rs 140 and  Rs 155 levels. The overall bias is maintained strong and we anticipate further rise in the coming days with near term support maintained at around  Rs 116-118 zone.”  

 About the company   

 Texmaco Rail & Engineering manufactures a diverse range of products, such as railway freight cars, hydro-mechanical equipment and industrial structural’s, loco components and loco shells, steel girders for railway bridges, steel castings, and pressure vessels along with engineering, procurement, construction (EPC) contracts for execution of railway track, signaling and telecommunication projects, rail electrification and automatic fare collection on turnkey basis. The company manufactures rolling stock, steel foundry, hydro mechanical equipment and steel structures, traction and coaching, bridges and structural, and rail EPC. The Company’s subsidiaries include Belur Engineering Private Limited, Texmaco Transtrak Private Limited, Texmaco Rail Systems Private Limited, Texmaco Rail Electrification Limited and Texmaco Engineering Udyog Private Limited.  

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