Rs 43 to Rs 137: This railway stock delivered multibagger returns in six months; time to buy, sell or hold?

Shares of Texmaco Rail & Engineering Ltd have delivered stellar returns of 217% in the last six months. The stock of railway products, which closed at Rs 43.24 on March 13, 2023 ended at a high of Rs 136.80 on BSE on September 13, 2023. An amount of Rs 1 lakh invested in the Texmaco Rail stock six months ago would have turned into Rs 3.17 lakh today. In comparison, Sensex has risen 16.07 per cent during the period.

The railway stock zoomed 5.93% intraday to Rs 144.50 on BSE on Wednesday. Total 6.71 lakh shares of Texmaco Rail changed hands amounting to a turnover of Rs 9.02 crore. Market cap of Texmaco Rail rose to Rs 4,380 crore. Later, the stock ended flat at Rs 137.40 on BSE.

ALSO READ: Rs 43 to Rs 137: This railway stock delivered multibagger returns in six months; time to buy, sell or hold?

The stock hit a 52 week low of Rs 40.49 on March 29, 2023 and a 52 week high of Rs 163.85 on BSE. Texmaco Rail shares have a beta of 1.2, indicating very high volatility in a year.

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

Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher, said, "The stock has been on a good run for 2–3 months and maintained the uptrend consistently. Short-term support could be seen at Rs 130 and strong support will be at Rs 115 level."

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Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "Since last three months, the counter has been making higher highs and higher lows structure on a daily scale. At the current juncture, the said counter has taken support near 21-EMA (Exponential moving average). As we advance, Rs 150 would be stiff resistance and support is seen around Rs 130."

AR Ramachandran from Tips2trades said, "Texmaco Rail has turned bearish on the daily charts with strong resistance at Rs 158.6. Investors should be booking profits at current levels as a daily close below support of Rs 134 could lead to a sharp fall till Rs 115 in the near term."

Market expert Ravi Singh said, "The stock is looking weak on daily charts. It may decline towards Rs 115 in the near term."

In terms of technicals, the relative strength index (RSI) of the stock stands at 52.4, signaling it's trading neither in the overbought nor in the oversold zone. Texmaco Rail shares are trading higher than the 50 day, 100 day 200 day but lower than the 5 day, 10 day and 20 day moving averages.     

In the last one year, the Texmaco Rail stock has surged 164.76%

Texmaco will trade ex-dividend next week on September 18. The company had announced a final dividend of 15 paise for the financial year 2022-23 (FY23).

Coming to the shareholding pattern, 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.

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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