Multibagger railway stock rises 9% in early deals, here's why 

Shares of engineering major Texmaco Rail and Engineering Ltd rose 9% on Thursday after the railway firm said it has secured a major international order worth $62.24 million (approximately Rs 535 crore) from CAMALCO SA., Cameroon. The long-term maintenance contract for wagons supplied by company is for a period of 20 years.

Texmaco Rail & Engineering shares rose 8.96% to Rs 189 on BSE today. Total 7.01 lakh shares of the firm changed hands amounting to a turnover of Rs 13.03 crore. Market cap of the firm climbed to Rs 7,388 crore.

The stock recorded multibagger returns of 374% in three years and 721% in five years.

The multibagger stock hit a 52 week low of Rs 115.10 on April 7, 2025 and a 52 week high of Rs 296.60 on July 12, 2024 on BSE.

The order consists of two key components — the manufacture and supply of 560 open-top wagons valued at $32.76 million (Rs 282 crore), and a 20-year long-term maintenance contract worth $29.48 million (Rs 253 crore). The wagon supply is will be carried out in two phases over 24 months from the date of the purchase order.

The contract also includes a provision for additional orders of 1,040 wagons over the next five years, along with their long-term maintenance, which could significantly expand the scope and value of the engagement.

Texmaco Rail & Engineering reported a 15% fall in Q4 net profit. Profit slipped to Rs 3545.52 crore in the last quarter against Rs 4169 crore profit in the March 2024 quarter. However, revenue rose 17.6% to Rs 1346 crore in the March 2025 quarter to Rs 1144 crore in the March 2024 quarter.

Operating performance also improved, with EBITDA rising 14.7% to Rs 97.6 crore. Margins held largely steady at 7.3%.

The firm also declared a dividend of Rs 0.75 per share.

Texmaco, a key player in the Adventz Group, is engaged in manufacturing railway wagons, coaches, and locomotives.