Will Texmaco Rail shares jump by 35%?

For some time now, there has been a slowdown in the stocks of the railway sector. Especially, there was no major announcement for the railway sector in Budget 2024, this also weakened the morale of the investors. Many stocks of the railway sector also saw a 20 per cent correction. But, Texmaco Rail shares may jump by about 35 per cent.

Domestic brokerage Nuvama Institutional is very bullish about Texmaco Rail. Nuvama believes that Texmaco shares can give a return of up to 35 per cent. Texmaco Rail has performed very well in the June quarter on an annual basis. But, both its revenue and profit have declined on a quarterly basis. However, the brokerage believes that the first quarter of the financial year remains sluggish for most companies.

Nuvama says that Texmaco Rail's order book in the June quarter was Rs 7,460 crore. 60 per cent of this is wagon orders. Texmaco's power division has recently received an order of Rs 240 crore from Mumbai Railway Vikas Corporation. The company's net-cash continues to improve. The company can complete the acquisition of Jindal Rail by next month. For this it will have to pay Rs 615 crore.