Texmaco Rail shares surge 50% from March low; Nuvama raises price target 

Shares of Texmaco Rail and Engineering have surged 50% from their March low, leaving investors guessing about how long the rally can last. But the stock's RSI at 57.8, indicates there might be more scope for returns. However, the stock has lost 15% this year and slipped 25% in a year. It could log multibagger returns of 330% in five years. Of late, the railway sector firm reported its Q4 earnings. Net profit rose 45.1% to Rs 57.7 crore from Rs 39.8 crore in the year ago period. 

However, revenue from operations slipped 13.3% YoY to Rs 1,167 crore in Q4 from Rs 1,346.4 crore a year ago.

EBITDA rose 9% to Rs 106.4 crore from Rs 97.6 crore). EBITDA margins climbed to 9.1% in the last quarter from 7.3% in Q4 FY25). Earnings Per Share rose to Rs 1.42 per share in Q4 from Rs 1.00 YoY.  The board recommended a 75% dividend of Rs 0.75 per equity share for FY26.

Brokerage Nuvama said the company recently won a Rs 4000 crore order, which it believes shall boost execution in FY28E. Texmaco is also diversifying into signalling, passenger coaches, defence and global capability centres to boost growth prospects.

It raised price target on Texmaco to Rs 158. 

"We are raising FY28E EPS by 2% as execution on the Rs 4000 crore order should boost growth in FY28E. Maintain ‘BUY’ with a revised TP of Rs 158 (Rs 147 earlier) based on 25x Q4FY28E EPS. At CMP, the stock trades at 18.6x FY28E EPS," said the brokerage. 

On May 12, the firm said it has won a major international rail opportunity in South Africa valued at more than Rs 4,045 crore through a letter of award from a South African train operating company. The order involves the supply of more than 2,235 freight wagons across multiple variants, along with 30 diesel locomotives.

The rail sector firm said this marks one of its largest international rolling stock opportunities and represents a key milestone in its global expansion plans. 

Texmaco Rail & Engineering shares slipped 6.74% to Rs 116.90 in the current session against the previous close of Rs 125.35. Market cap of the firm slipped to Rs 4756 crore.

Total 9.71 lakh shares of Texmaco Rail changed hands amounting to a turnover of Rs 11.53 crore. Market cap of the firm rose to Rs 4756 crore.

The stock hit a 52 week high of Rs 189 on June 26, 2025 and a 52 week low of Rs 78.15 on March 30, 2026 on BSE. Texmaco Rail shares have a beta of 1.75, indicating very high volatility in a year.

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.