Texmaco Rail & Eng. Share Price

1. For the quarter ended on June 30, 2018, Texmaco Rail & Engineering Limited reported its total income to be at Rs.325.7 crore, as against Rs.237.9 crore reported for the June quarter of the previous financial year.
2. On a YoY basis, the company's overall expenditure jumped up by a little over 25%. However, this didn't impact the profitability of the company.
3. After taxation and other expenses, the company reported a net profit of Rs.6.5 crore as against a loss of Rs.8.6 crore for the quarter ended on June 30, 2017. However, with respect to the March quarter, Texmaco Rail's net profit has dropped down from Rs.22.9 crore to the present figure.
4. Owing to this significant improvement in the profit on a YoY basis, the company's basic earnings per share (EPS) jumped up from a negative Rs.0.39 to Rs.0.30.

Texmaco Rail & Engineering Limited Stock Trends in 2018

1. At the start of January 2018, the share price of Texmaco Rail & Engineering Limited was seen varying at levels close to Rs.111. The scrip made marginal gains in the first half of the month, only to lose them all considerably in the second half. By the end of the month, the shares had lost close to 10% to touch the Rs.103 mark.
2. The months of February and March weren't that eventful for the investors. The shares continued to go down in a gradual manner. In the span of these two months, the scrip lost close to 15% and went below the Rs.85 mark by late March. The closing price of the Texmaco stocks on March 28, 2018, was Rs.83.40 on the NSE.
3. Through the month of April, the shares remained buoyant at levels above Rs.85. It wasn't until the month of May that the shares took another fall and once again, they lost a little over 10% to dip below the Rs.75 mark. Through most of June and July, the Texmaco share price varied from Rs.68 - Rs.73, without incurring any sharp gains or losses.
4. In the final week of July, the shares bounced back to ascend back to their previous levels above the Rs.75 mark. Things remained that way for most of August and September and in the same period, the company announced a final dividend of 25%.
5. It wasn't until the final week of September that the shares took a sharp nosedive owing to uncertainties in the markets and a falling rupee. The fall was well in line with that of SENSEX and Nifty and by early October, the scrip had reached its 52-week low at Rs.53.90. As of mid-October, the Texmaco share price was seen varying at levels above Rs.55.

Texmaco Rail & Engineering Limited Stock Trends in 2016 and 2017

1. At the start of 2016, the Texmaco Rail & Engineering Limited shares were seen changing hands at levels above Rs.150. For the first couple of months, things didn't change considerably as the shares maintained their momentum close to the Rs.150 mark. However, by March, the scrip had lost close to 30% in a dramatic plunge and as a result, the shares were down in the Rs.100 region.
2. Over the course of the second quarter of the month, that is, from April to June, the Texmaco stock price retained its bearings at levels close to the Rs.100 mark. Towards the end of June, the scrip lost close to 5% to dip into the Rs.90 region with the closing price on June 30, 2016, being Rs.93.90 on the NSE.
3. The shares started to gain marginally in the month of July and by August, the same were up in the Rs.110 region. Through most of September and October, the stocks maintained their momentum at levels above Rs.110, without incurring any significant losses.
4. A final dividend of 25% was also announced in this period. Even though there was a minor fall post demonetisation, the scrip managed to bounce back and recuperate its previous losses. The closing price of the shares on December 30, 2016, was Rs.109.20 on the NSE.
5. 2017 started on a bearish note for the investors. The scrip commenced the year trading at levels close to Rs.113 on the NSE. The same, by early February, had lost close to 15% and once again, the scrip was down in the Rs.90 region. The price dipped marginally in the month of March as well and this time, the shares were down in the Rs.80 region.
6. The shares bounced back in the month of April and for the next few weeks, the scrip maintained its position above the Rs.100 mark. However, in the final week of May, the Texmaco share price dipped once again and consequently, the shares went below the Rs.90 mark. Things stayed this way through most of June and July as well.
7. In early September, the company announced a final dividend of 25%. This announcement was soon followed by a bull run which led to the scrip make excellent gains. By early October, the Texmaco Rail & Engineering Limited stock price was up by a little over 30% into the Rs.110 region. On the back of this remarkable surge, the shares soon ended up hitting their 52-week high at Rs.129.30. Eventually, the shares ended the year at Rs.129.30 on the NSE.

Should you Invest in Texmaco Rail & Engineering Limited Shares?

1. Texmaco Rail & Engineering Limited is a company is that primarily engaged in the business of producing freight cars and rolling stock, process equipment, steel structures, hydro-mechanical equipment, and rail EPC. It is a part of the Adventz Group of companies is led by a sound management team guided by the founder, Mr. S. K. Poddar.
2. For the year ended on March 31, 2018, the company reported its consolidated total income to be at Rs.1,198 crore - a YoY drop of a little over 20%. Considering the segment-wise revenues, the heavy engineering division reported a drop of roughly 45% in its revenue while steel foundry incurred a drop of close to 25% YoY. On the other hand, the company's freight car business picked up momentum and reported a surge of 15% in its revenue.
3. As for the profitability of the company, Texmaco reported its net profit after tax and expenses to be at Rs.13.39 crore, as against a profit after tax of Rs.27.02 crore reported at the end of the previous fiscal year. Consequently, the company's consolidated earnings per share (EPS) went down from Rs.1.24 to Rs.0.58 YoY.
4. Considering the performance of the company's stock, the scrip has lost as much as 50% over the course of 2018. In fact, as of mid-October, it was seen trading close to its 52-week low at Rs.53.90. Its Q1 FY19 performance wasn't impressive either.
5. However, as per the company's press release, it has started executing the order for 1,764 wagons placed by the Railway Board and it is expected to gain momentum over the course of the fiscal year. Additionally, the export outlook for the company's steel foundry division and the Rail EPC division look positive seeing that they have started receiving orders already. All things considered, the company's consolidated order book is worth Rs.5,200 crore.
6. As the company gains momentum in the subsequent quarters and starts fulfilling its orders, we can expect its shares to rise and deliver decent returns. However, from a long-term perspective, there are better players in the infrastructure space with superior performance and assets. Before investing in this stock, it is strongly recommended that you research thoroughly.

Company Information

Texmaco Rail & Engineering Limited is an engineering and infrastructure company. It is mainly known for producing railway freight cars, hydro-mechanical equipment, steel structures, boilers, pressure vessels and other process equipment. The company is also in the business of railway engineering, procurement, and construction.

History of the Company

Texmaco Rail & Engineering Limited was formed after the demerger of the parent company Texmaco Limited - a firm that was founded back in 1939 by the late industrialist Dr. K. K. Birla. It is presently the flagship company of the Adventz Group. The company has been manufacturing freight cars for more than seven decades now and over the years, it has also entered into joint partnerships and technical collaborations with various domestic and international firms. The company was incorporated in the year 1998 as Texmaco Machines Private Limited. In 2010, the company changed its name to Texmaco Rail & Engineering Limited and the next year, it went public.

Management of the Company

Mr. Saroj Kumar Poddar - Executive Chairman

Mr. Saroj Kumar Poddar presently serves as the Executive Chairman of Texmaco Rail & Engineering Limited. He also serves as the Chairman of the Board at various companies like Zuari Global Limited, Simon India Limited, Poddar Heritage Investments Limited, and Adventz Investment and Holdings Limited. He is also the Vice President of Marketing at Chambal Fertilisers and Chemicals Limited. He is also associated with Texmaco Infrastructure & Holdings Limited in the capacity of Non-Executive Chairman since September 2008. In addition to these companies, he has also been associated other reputed firms such as Gillette India Limited, Gulbarga Cement Limited, Singer India Limited, ALSTOM T&D India Limited, Bengal Food Park Limited, and many more. He is also associated with various organisations like Council of Indian Employers, All India Organisation of Employers, Indo-French CEO Forum, and India-Saudi Arabia Joint Business Council. Mr. Poddar is an alumnus of Calcutta University.

Mr. Amal Chandra Chakrabortti - Independent Director

Mr. Amal Chandra Chakrabortti serves as the Independent Director of Texmaco Rail & Engineering Limited. He is a Chartered Accountant who is a fellow member of the Indian Institute of Chartered Accountant of India and a member of the Institute of Chartered Accountants in England & Wales. In addition to his present responsibilities, he serves as the Chairman of Opala Glass Limited, United NanoTech Products Limited, and La Opala RG Limited. He also serves as a Director of Rasoi Industries Limited, Calcutta Metropolitan Group Limited, Asian Hotels (East) Limited, and many other companies. Over the years, he has been associated with the likes of Grindwell Norton Limited, Coastal Roadways Limited, and TamilNadu Petroproducts Limited.

Mr. Akshay Poddar - Non-Executive, Non-Independent Director

Mr. Akshay Poddar serves as the Managing Director and Compliance Officer of Poddar Heritage Investments Limited, and Poddar Heritage Corporation Limited. Over the years, he has worked with various other companies like Gillette India Limited, Adventz Securities Enterprises Limited, Chambal Fertilisers & Chemicals Limited, CFCL Technologies Limited, Paradeep Phosphates Limited, Zuari Industries Limited, et cetera. He has also been associated with several international entities like Coltrane Corporation Limited, Globalware Holding Limited, and Planon Group Limited. Mr. Poddar graduated from the London School of Economics & Political Science in 1999 with Honours in Accounting & Finance.

Texmaco Rail & Engineering Limited Stock Listings in NSE, BSE, and Indices

The equity shares of Texmaco Rail & Engineering Limited are available to the general public for trading. These shares are listed on the country's two major bourses - the National Stock Exchange of India Limited and the Bombay Stock Exchange. The respective codes for the same are as follows:

1. BSE Code: 533326
2. NSE Code: TEXRAILEQ
3. ISIN: INE621L01012
4. Sector: Engineering, Infrastructure General

Coming to the stock market indices, the company comprises the following:

1. Nifty 500
2. Nifty Smallcap 250
3. S&P BSE 400 MidSmallCap
4. S&P BSE AllCap
5. S&P BSE 500
6. S&P BSE Industrials
7. S&P BSE SmallCap

Registered Office

Texmaco Rail & Engineering Limited

Belgharia, 24 Parganas (North)

Kolkata - 700-056

Contact number: +91-33-2569-1500

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DISCLAIMER:

The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.