Texmaco Rail's stock zooms over 200% in six months; analysts remain mixed on share price

Shares of Texmaco Rail & Engineering Ltd rose sharply in Monday's trade, taking their sharp upward run to the second straight session. The stock surged 12.07 per cent to hit a day high of Rs 150 over its previous close of Rs 133.85. As the session progressed, the counter erased a major chunk of its gains and was last seen trading 5.19 per cent higher Rs 140.80. The multibagger stock has gained more than 200 per cent in the last six months. On BSE, around 6.52 lakh shares changed hands today at the time of writing this story. The figure was way more than the two-week average volume of 1.37 lakh shares. Turnover on the counter stood at Rs 9.34 crore, commanding a market capitalisation (m-cap) of Rs 4,531.93 crore.

On the financial front, the company reported a total income of Rs 810.41 crore during the period ended September 30, 2023 (Q2 FY24) as compared to Rs 692.56 crore during the period ended June 30, 2023 (Q1 FY24). It posted a net profit of Rs 24.65 crore for the period Q2 FY24 as against a profit Rs 12.75 crore for the period ended June 30, 2023.

Technical analysts largely remained mixed on the counter. Support could be seen at Rs 137 while resistance may be witnessed at Rs 146.5.

DRS Finvest founder Ravi Singh said, "Texmaco Rail is looking strong on technical setup with the parameters of RSI (Relative Strength Index) and MACD (Moving Average Convergence/Divergence) are in buy zone. The long-term moving averages are trading below the stock, supporting the up move. The counter may touch the levels of Rs 160 in near term."

AR Ramachandran from Tips2trades said, "Texmaco Rail has turned bearish on the daily charts with strong resistance at Rs 146.5. A daily close below support of Rs 137 could lead to a sharp fall till Rs 115 in the near term."

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's 14-day relative strength index (RSI) came at 59.34. 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 66.12 against a price-to-book (P/B) value of 3.13.

The scrip has a one-year beta of 0.96, indicating average volatility.

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

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