This rail stock is Anand Rathi’s pick for December, sees 17% upside in a month

Texmaco Rail & Engineering witnessed a bittersweet movement in Tuesday’s trading session. Although the smallcap stock opened on a flat note, it did manage to touch a new 52-week high, however, corrected soon after. On BSE, the stock closed around 62 levels lower by more than 1%. However, this brings an opportunity of buying Texmaco Rail stock. Anand Rathi believes that this railway stock will catch up to its peers in the coming weeks. The stock brokerage expects over 17% upside in Texmaco Rail in a month.

On BSE, Texmaco Rail stock closed at 62.30 apiece down by 1.11%. However, in the early deals, the stock had touched a new 52-week high of 65.30 apiece on the exchange. Its intraday low was around 61.75 apiece.

On the upside front, Texmaco Rail jumped by nearly 4% on BSE in early deals on Tuesday. However, investors cashed in profits after the stock hit a fresh 1-year high. On the lower front, overall, the stock has plunged by nearly 2% in the day.

The company’s market cap is around 2,005.25 crore.

Notably, Texmaco Rail is a multi-bagger stock. So far in 2022, the stock has climbed by over 89% on BSE. However, in a year, the stock skyrocketed by a whopping 124.90% on BSE. The stock was below 28 on BSE on November 29, 2021.

Texmaco Rail is the pick of the month for Anand Rathi. In its report, the stock brokerage said that recently they have witnessed huge traction on all the railway-related stocks.

Anand Rathi’s note said, “TEXRAIL has been consolidating for quiet some time and recently we witnessed a fresh range breakout in the stock. We expect the stock to catch up its peers in the coming weeks.”

The stock brokerage suggests traders to buy the stock near 63.50 with a stop loss of 57 for an upside target of 75. This would be about a 17.1% upside in the stock compared to the current levels. The timeframe for the stock to reach the target of 75 is set as 1 month.

During the second quarter of FY23, Texmaco Rail’s consolidated net profit more than doubled to 15.44 crore compared to profitability of 6.33 crore in Q2 of the previous fiscal. Consolidated revenue from operations also rose to 484.44 crore in Q2FY23 versus 373.44 crore in the same quarter a year ago.

Texmaco Rail is a premier multi-discipline, multi-unit engineering, and infrastructure company, with 5 manufacturing units extending over 170 acres on the outskirts of Kolkata.

 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.


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