Texmaco Rail shares jump 9% today; can stock revisit record high levels?

Texmaco Rail & Engineering Ltd shares surged up to 8.07 per cent in Friday's trade to hit a high of Rs 222.30. The stock was last seen trading 5.93 per cent higher at Rs 217.90. At this price, Texmaco Rail has gained 25.34 per cent on a year-to-date (YTD) basis. Despite the mentioned rise, the scrip was down 6.04 per cent from its all-time high of Rs 231.90, a level seen earlier this year on February 2.

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.

The counter saw heavy trading volume on BSE today as around 11.47 lakh shares changed hands at the time of writing this story. The figure was way more than the two-week average volume of 3.83 lakh shares. Turnover on the counter came at Rs 24.77 crore, commanding a market capitalisation (m-cap) of Rs 8,624.50 crore. There were 4,81,453 sell orders against buy orders of 80,108 shares.

A few technical analysts largely remained positive on the counter. One of them suggested that it can hit an upside target of Rs 235 in the near term.

Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "The stock can hit an upside target of Rs 235 in the near term. Keep stop loss placed at Rs 205 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 223. A decisive close above Rs 223 level may trigger a further upside towards Rs 235. The expected trading range will be between Rs 200 and Rs 235 for a month."

The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 62.02. 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 72.92 against a price-to-book (P/B) value of 3.31. Earnings per share (EPS) came at 2.82 with a return on equity of 4.53. The scrip has a one-year beta of 1.4 which indicates high volatility, Trendlyne data showed.

The Kolkata-headquartered private engineering and infrastructure company is primarily engaged in the business of manufacturing railway wagons, coaches and locomotives. As of March 2024, promoters held a 48.14 per cent stake in the company, slightly lower than 50.16 per cent during the December 2023 quarter.