Texmaco Rail shares rose 63% from 52-week low this year; here's what analysts say 

Shares of Texmaco Rail & Engineering Ltd have risen 63% from their 52-week low this year. The multibagger railway stock fell to its 52 week low of Rs 141.85 on March 13, 2024. Texmaco Rail stock ended 0.83% higher at Rs 231 in the current session, rising 63.08% in nine months in 2024. In two years, the stock has risen 321% in two years and gained 696.55% in three years.

Total 3.13 lakh shares of Texmaco Rail changed hands amounting to a turnover of Rs 7.31 crore. Market cap of the firm rose to Rs 9,227 crore.

The stock hit a 52 week high of Rs 296.60 on July 12, 2024 on BSE.

Texmaco Rail shares have a beta of 1.7, indicating very high volatility in a year.

Jigar S Patel, Technical Research Analyst at Anand Rathi Shares and Stock Brokers said, "Support will be Rs 222 and resistance at Rs 239. A decisive move above the Rs 239 level may trigger a further upside of 250 . The expected trading range will be between Rs 220 to Rs 250 for the short-term."

Hardik Matalia, Derivative Analyst at Choice Broking said, "The stock is in a short-term uptrend after reversing from its recent lows around Rs 180. It is forming higher highs and higher lows pattern, indicating a bullish structure. Currently, the price is attempting to break above the key resistance zone near Rs 240. The stock has seen decent volumes on this upward move, supporting the bullish sentiment. The stock is trading above its 20, 50, and 100 EMA levels, which shows positive momentum. The 200 EMA at 206.44 is acting as a strong long-term support level, reinforcing bullish confidence.

On the downside, immediate support is positioned at Rs 225 – Rs 227, with the immediate resistance located at the levels of Rs 236 – Rs 240. The stock appears to offer an attractive buying opportunity for a potential target of Rs 265 – Rs 275, provided that investors adhere to effective risk management strategies."

Vinod Jhaveri, Independent Analyst at Pure Technicals said, "Texmaco Rail is a rerating candidate with good potential upside of 50%. Technically, the stock is making a round bottom in weekly charts and a close above Rs 245 will give it a good momentum to head towards Rs 280- Rs 300 zone."

Kushal Gandhi, Technical Analyst, StoxBox is of view to avoid making new positions in the stock.

"The share price of Texmaco Rail has experienced a notable increase of 25% over the past 14 trading sessions. However, the last four trading sessions have been marked by significant volatility, leading to wider daily price ranges and creating uncertainty regarding a clear directional bias. Currently, the stock is trading nearly 8% above its mean, and the upper Bollinger Band is acting as a resistance point, which suggests a likelihood of mild consolidation. Additionally, the stock lacks sufficient earnings per share (EPS) and price strength when compared to its peers and the broader market. Therefore, we recommend avoiding new purchases of Texmaco Rail at the current market price," said Gandhi.

Aditya Gaggar Director of Progressive Shares On Texmaco Rail & Engineering said, "Texmaco Rail has given a breakout from Symmetrical Triangle Formation and recently, completed its pullback move as well. A double bottom breakout in the RSI and a positive crossover in the MACD indicates trend continuation. The stock is quoting well above all the leading moving averages which further provides trend confirmation. As per the pattern, the target comes to Rs 278."

A R Ramachandran, SEBI registered Independent analyst says, "Texmaco Rail stock price is bearish on the Daily charts with strong resistance at Rs 240. A Daily close below the support of Rs 228 could lead to a target of Rs 200 in the near term."

In terms of technicals, the relative strength index (RSI) of the stock stands at 61.1, signaling it's trading neither in the overbought nor in the oversold zone. Texmaco Rail shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.

The firm logged a profit of Rs 74.1 crore in Q2 against Rs 24.6 crore in the corresponding quarter last year. Revenue climbed 67% to Rs 1,346 crore in the last quarter from Rs 805 crore a year ago.

Earnings before interest, taxes, depreciation, and amortisation, rose 74% to Rs 132 crore from Rs 76.2 crore. The EBITDA margin expanded to 9.8% from 9.5% in the same period last year.

About the company

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.