Shares of Texmaco Rail & Engineering Ltd continued their strong run for the second consecutive session in Thursday's trade. The stock jumped 11.15 per cent to hit an all-time high of Rs 245.70. It was last seen trading 8.82 per cent higher at Rs 240.55. At this price, the scrip has gained 38.37 per cent on a year-to-date (YTD) basis.
Analysts largely remained positive on the counter. Support could be seen at Rs 234, followed by Rs 220 and Rs 215 levels. And, a decisive close above Rs 245 is required for more upside.
Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, said, "Railway stocks are back in action again. Investors with a high-risk appetite can buy Texmaco Rail on dips. The company's overseas projects and order book are looking very lucrative."
Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "The stock has experienced significant trading volume in the past few weeks, causing the stock to reach new highs. It has formed a rounding base and experienced a breakout around the Rs 220-215 zone. It appears that the stock is set to continue its upward trend with initial support at the breakout range (Rs 220-215), followed by the bullish gap in Rs 200-196 levels."
Ravi Singh, Senior Vice-President (Retail Research) at Religare Broking, said, "Immediate resistance will be seen at Rs 245 and only a decisive close can dictate the next leg of rally. Support will be at Rs 234."
The counter was trading higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 71.44. 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 78.36 against a price-to-book (P/B) value of 3.55. Earnings per share (EPS) stood at 2.82 with a return on equity of 4.53.
The scrip saw heavy trading volume on BSE today as around 9.95 lakh shares were last seen changing hands. The figure was higher than the two-week average volume of 4.52 lakh shares.
Turnover on the counter came at Rs 23.56 crore, commanding a market capitalisation (m-cap) of Rs 9,549.27 crore.
The Kolkata-headquartered private engineering and infrastructure company is primarily engaged in the business of manufacturing railway wagons, coaches and locomotives. As of March 2024, promoters held a 48.14 per cent stake in the company, slightly lower than 50.16 per cent during the December 2023 quarter.