Texmaco gets a boost from rail budget

Texmaco moved up 1.77% to Rs 1615 at 13:21 IST on BSE after the railway minister said 20,000 new freight wagons are expected for 2008/09 and another 5,000 open wagons are to be upgraded to stainless steel.

Meanwhile, the BSE Sensex was up 83.10 points, or 0.47%, to 17732.12, following overnight rally in US stocks. US stocks rose sharply on Monday, 25 February 2008, on signs the two largest bond insurers would stabilize, bringing a wave of relief to a market dogged by concerns of further bank write-downs.

On BSE, 9336 shares of the scrip were traded. The stock had an average daily volume of 5157 shares on BSE in past one quarter.

The scrip had touched a high of Rs 1660 and a low of Rs 1614 so far during the day. The stock had hit a 52-week high of Rs 1965.50 on 2 January 2008 and a 52-week low of Rs 710 on 7 March 2007.

The scrip had outperformed the market in the one month to 25 February 2008, adding 2.81% as against the Sensex's 3.87% decline. It had also outperformed the market in the past three months, soaring 15.23% against the Sensex's 7.72% slide.

The mid-cap engineering firm has an equity capital of Rs 10.32 crore. Face value per share is Rs 10.

At the current price of Rs 1615, the scrip trades at a PE multiple of 28.60, based on Q3 December 2007 annualised EPS of Rs 56.46.

The net profit of Texmaco rose 107.4% to Rs 14.58 crore on 78.5% rise in sales to Rs 160.54 crore in Q3 December 2007 over Q3 December 2006.

Texmaco, a part of K K Birla Group, is a diversified engineering company. It manufactures railway freight cars/wagons, hydro-mechanical equipment for mega power projects, heavy steel structures and process equipment.