Texmaco Rail shares hover around all-time high level; which way the stock is headed?

Texmaco Rail & Engineering Ltd shares on Monday traded near their all-time high of Rs 225, a level seen earlier on January 20, 2024. The stock was last seen up 0.69 per cent today at Rs 212.05. At this price, the multibagger scrip has gained more than 290 per cent in a year.

Bourses BSE and NSE have put the securities of Texmaco Rail under the long-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

On technical charts, immediate support on the counter could be seen around the Rs 205-190 zone. And, a decisive close above Rs 225 level is required for a further upside.

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "Texmaco Rail has been in a stellar bull run, hovering in the cycle of higher highs – higher lows. The stock is currently near the lifetime high zone and seems poised to continue its upward march with some in-between profit bookings. Immediate support lies around the Rs 200-190-odd zone, followed by the strong support of Rs 180-175. On the higher end, as the counter is into uncharted territory, there is no identical potential resistance. However, with the ongoing momentum, it is advisable to keep trailing profits on the higher end."

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher, said, "The stock has significantly gained strength along with other rail stocks in the last 2 months. It has more steam left and we suggest a buy recommendation in this stock for upside targets of Rs 235-260. Keep stop loss placed at Rs 197 level."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Support will be at Rs 205 and resistance at Rs 225. A decisive close above Rs 225 level may trigger a further upside till Rs 250. Expected trading range will be between Rs 180 and Rs 250 for a month."

AR Ramachandran from Tips2trades said, "Texmaco stock price looks bullish on daily charts with strong resistance at Rs 225. A daily close above resistance of Rs 225 could lead to Rs 250 in the near term. Strong support will be at Rs 185."

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 66.51. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a price-to-equity (P/E) ratio of 123.91 against a price-to-book (P/B) value of 5.86.

The scrip has a one-year beta of 0.5, indicating low volatility.

As on December 2023, promoters held 50.16 per cent stake in the company.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

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